The GBP/USD currency pair felt resistance, signaling traders about the end of the corrective movement after converging with the 1.3440 / 1.3480 range. What do we have on the market? The end of the correction, which reached a range level, compared itself with two values: 1.3440 – the level of medium importance and Fibo 23.6 – amplifying the resistance signal.
Volatility and the “bearish” interest are growing. The recently published economic data for the UK were worse than expected, which further supported the downward sentiment. At the same time, expectations of traders with the Fed, where almost 100% raise the rate from 1.75% to 2.00%, will definitely support the dollar.
What can we expect
The level of 1.3200 will most likely be the first thing that the price will face. It will serve as a passing support, where in case of fixation below, we will quickly reach a local minimum of 1.3200 and earlier at this level, the quotation went to the correction stage.
All indicators confirm a bearish attitude. Market volatility is also high, which may lead to a further impulse.
The material has been provided by InstaForex Company – www.instaforex.com