The GBP USD closed higher after selling pressure failed to drive the market into a 50 percent retracement level at 1.5580. The strong finish gave the market a
The GBP USD closed higher after selling pressure failed todrive the market into a 50 percent retracement level at 1.5580. The strongfinish gave the market a bullish bias while putting it in a position tochallenge a retracement level at 1.5925 and a minor top at 1.5928.
Based on the main range of 1.6618 to 1.5233, the retracementzone at 1.5925 to 1.6089 is this week’s first upside target. Since the maintrend is down, traders should watch for possible selling pressure to developinside of this zone.
Uptrending Gann angle support is at 1.5793 this week. Thisangle could control the short-term direction of the market. On the upside, adowntrending Gann angle at 1.6058 could become resistance if tested. This anglealso pierces the retracement zone and actually forms a resistance cluster with1.6089.
A breakout may occur over the resistance cluster, buttraders should know that the main trend will not turn up on the weekly chartuntil the swing top at 1.6165 is penetrated. Besides the close near the high ofthe week, the British Pound also closed over a downtrending Gann angle at1.5825. This is another sign that a bullish bias is developing. This assessmentwill change if the uptrending Gann angle at 1.5793 fails to hold as support.