GBP/USD: the pair has downside potential
Last week the pair repeatedly tried to break down strong resistance level of 1.6060, which coincides with the level of 23.6% Fibonacci. Following unsuccessful attempts to go up, the pair GBP/USD fell to the level of 1.5900 and corrected to 1.5970. It is likely that the pair will try to break down the level of 1.6000, however more probable that the pair will fall to 1.5900 or even down to 1.5750.
Support and resistance
The nearest support level is 1.5940, next support levels are 1.5900 и 1.5850. The level of 1.5900 is the main target of the “bears”. Resistance levels: 1.6000 and 1.6050.
Short positions are recommended after breaking down of the level of 1.5900. In case of correction it makes sense to place limit sell orders at the levels of 1.6000 and 1.6050.
Analyst of LiteForex Group of Companies