GBPUSD Analysis

GU is generally in a down trend. We witnessed a reversal at a key psychological area (1.36000), and our intra line was violated following an EMA crossover, confirming a change in direction. Price broke above 1.37000 (another key area) and is currently in consolidation. Price has already tested and bounced off the 38 Fibonacci retracement level and is creating higher highs on lower timeframes. This gives us the impression that price wants to continue up. If it does, our targets are the 27 Fibonacci extension, which perfectly lines up with our next key area, giving more reason to have this as our take profit area.

We also are expecting price to give us a clear indication of whether in will crash on the third touch of the main trendline or will price break out, come back to retest at 1.38000 before continuing up.