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At the time of publication of this article, the GBP/USD pair is traded near the 1.3040 mark, remaining in the bear market zone below the key resistance levels 1.3390 (EMA200 on the weekly chart), 1.3515 (EMA200 on the daily chart). The pair continues to develop negative dynamics, moving within the descending channels on the daily and weekly charts. The lower border of the descending channel on the weekly chart passes through the mark of 1.2865.
Breakdown of this support level will strengthen the negative dynamics of GBP/USD, sending the pair towards local lows 1.2685, 1.2400.
In an alternative scenario, GBP/USD will resume growth. As you can see from the 1-hour chart, the price has already broken upwards from an important short-term resistance level (200-period moving average), which was the first signal for the implementation of this scenario.
In case of breakdown of the resistance level 1.3210 (Fibonacci level 23.6% of the correction to the decline of the GBP/USD pair in the wave that began in July 2014 near the mark of 1.7200), corrective growth may continue to the resistance level 1.3308 (EMA200 on the 4-hour chart). Breakdown of resistance levels 1.3365, 1.3390 (EMA200 on the weekly chart) will strengthen the upward trend. Breakdown of the key resistance level 1.3515 may bring the GBP/USD back into the bull market zone. This will be confirmed by a breakdown of the local resistance levels 1.3500, 1.3640.
In our main scenario, short positions remain preferable. The signal for their resumption will be a breakdown of support levels 1.3141, 1.3110.
Support levels: 1.3141, 1.3110, 1.3000, 1.2950, 1.2865, 1.2685, 1.2400, 1.2250, 1.2085, 1.2000
Resistance levels: 1.3160 1.3210 1.3275 1.3308 1.3365 1.3390 1.3430 1.3515 1.3580 1.3640 1.3700 1.3745 1.3832 1.3900 1.3970
Trading recommendations
Sell Stop 1.3130. Stop Loss 1.3180. Take-Profit 1.3110, 1.3000, 1.2950, 1.2865, 1.2685, 1.2400, 1.2250, 1.2085, 1.2000
Buy Stop 1.3180. Stop Loss 1.3130. Take Profit 1.3210, 1.3275, 1.3308, 1.3365, 1.3390, 1.3430, 1.3515, 1.3580, 1.3640, 1.3700, 1.3745, 1.3832, 1.3900, 1.3970, 1.4000
