Exclusive GBP/USD analysis 25.10.2016

GBP/USD Historical Sellers are Close

The GBP/USD trading has been normalized and as I already explained, it is much safer to sell on rallies. Last week we saw some retracement which was again sold into so POC zones could come in play again. 1.2250-60 is the closest POC zone (inner trend line, 50.0, H3) that makes a confluence with historical sellers (purple rectangle). Rejection from the zone targets 1.2200 and 1.2170. Only if we see a 4h close below or h1 momentum below 1.2170 the scope for 1.2130 will be open. Usually on Mondays we have some false trends shaping up so any up-move should be watched as a retracement in downtrend.

Pay attention to 1.2285 because the price should be ideally below it else it might breakout to 1.2315.

Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets