GBPUSD expected to bounce off support levels
The GBPUSD has experienced a rapid decline from the upper edge of the ascending price channel to the lower edge, where it settled at 1.24128. It is also currently above the weekly support line, Fibonacci level of 38.20%, and a rising trendline. Additionally, the price is only 20 pips above the 100-period moving average for the 4-hour timeframe.
It is expected that the price will respond to the local weekly resistance, the rising trendline, the moving average, and the Fibonacci level by moving upwards to make a correction towards 1.24470, possibly reaching 1.24585. However, if it continues to drop and breaks the rising trendline, and then confirms the break by going below the 100-period moving average, it is likely to continue the decline towards 1.2325.
The idea of a potential decline is supported by the existence of a divergence between the last two price peaks, indicating a lack of strength and momentum to support further upward movement.
It is expected that the price will respond to the local weekly resistance, the rising trendline, the moving average, and the Fibonacci level by moving upwards to make a correction towards 1.24470, possibly reaching 1.24585. However, if it continues to drop and breaks the rising trendline, and then confirms the break by going below the 100-period moving average, it is likely to continue the decline towards 1.2325.
The idea of a potential decline is supported by the existence of a divergence between the last two price peaks, indicating a lack of strength and momentum to support further upward movement.
