RLinda ! GBPUSD-> Testing strong support. What's next?

16 Sep 2022

GBPUSD price is falling from the 1.17600 zone by 3.4% - this is a strong move for the currency market. The fundamental situation does not give a clear picture, as important events will take place only next week, and the dollar keeps getting stronger

From the technical analysis point of view: the price in the global situation is in the area where a pullback can be expected. We can see that the GBP is testing the strong support line, which has started its formation from the end of 2021, as well as the "descending wedge" pattern is forming, and it is possible that the price in the long-term can break through the resistance and start to recover.

I assume, as the price was in a downtrend for a long time and in a year and a half has reached a strong support level of 1.1447, it will be difficult to break through this strong zone from the first time. I expect a pullback of the price and fixation above the level of 1.1447. The short-term target in this situation is the resistance level of 1.16000.

Regards R.Linda!