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GBP / USD failed to develop an upward correction at the end of last week, and having bounced off the resistance level 1.3720 (ЕМА200 on the daily chart), the pair resumed its decline, having fallen by more than 160 points since the beginning of the week.
At the time of publication of this article, the GBP / USD pair was traded near the important psychological support level 1.3500, which is also crossed by the lower border of the descending channel on the weekly chart. Its breakdown will increase the risks of further decline with the target at the key support level 1.3365 (ЕМА200 on the weekly chart). A breakdown of the support level 1.3210 (Fibonacci level 23.6% of the correction to the decline of the GBP / USD pair in the wave that began in July 2014 near the level of 1.7200) will finally return GBP / USD to a long-term bear market.
In an alternative scenario, GBP / USD will resume its growth, bouncing off the support level 1.3500. The first signal to resume buying will be the pair's return into the inside of the descending channel on the daily chart and the breakdown of the local resistance level 1.3555 (today's highs), and the confirming signal will be an increase into the zone above the resistance levels 1.3645 (ЕМА50 on the weekly chart), 1.3671 (ЕМА200 on the 1-hour chart).
Support levels: 1.3500, 1.3365, 1.3210
Resistance levels: 1.3600, 1.3645, 1.3671, 1.3720, 1.3749, 1.3785, 1.3900, 1.3970, 1.4000
Trading recommendations
Sell by market. Stop-Loss 1.3560. Take-Profit 1.3400, 1.3365, 1.3210
Buy Stop 1.3560. Stop-Loss 1.3480. Take-Profit 1.3600, 1.3645, 1.3671, 1.3720, 1.3749, 1.3785, 1.3900, 1.3970, 1.4000, 1.4100, 1.4200, 1.4240, 1.4300, 1.4350, 1.4440, 1.4580, 1.4830
