Technical outlook and chart setups:
The GBP/USD is already set to have resumed a structural bull run since 1.4800 levels (a double bottom was confirmed in July 2013) as seen on the daily chart view here. Since July 2014, the pair has been correcting itself and it looks like it has just completed its first corrective leg at the 1.6100 level before bouncing back. The current rally could extent up to the 1.6800/1.6900 levels before the pair resumes the final corrective wave towards 1.5700/50 levels. Please also note that 1.5700/50 levels converge with the fibonacci 0.618 support of the entire rally from 1.4800 to 1.7100 as depicted here. It is recommended to initiate long positions around 1.6250/1.6300 levels, for an extended pullback higher.
Trading recommendations:
Flat for now, look to enter long around 1.6250/1.6300, stop below 1.6100, target 1.6800/1.6900.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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