GBP/USD (28th of August 2017)
Last week this pair has respected and bounced from key area of support and resistance (yellow) - creating a new higher low. As well as completing 3 bounces from a key ascending trend line.
My thought on this pair is that it may be on its way to 1.30490, thinking beyond that my second target is th 1.33300 region to create a new higher high.
However, it's also important to consider other scenarios such as the price retracing to a key FIB level (38% or 50%). Then going back down to test or maybe even break the trend line.
Should the trend line be broken, my next target would be at the previous higher low at 1.25900.
My thought on this pair is that it may be on its way to 1.30490, thinking beyond that my second target is th 1.33300 region to create a new higher high.
However, it's also important to consider other scenarios such as the price retracing to a key FIB level (38% or 50%). Then going back down to test or maybe even break the trend line.
Should the trend line be broken, my next target would be at the previous higher low at 1.25900.