GBPUSD Might Drop To 1.2650 Before Pullback

15 September 2020

GBPUSD seems to have carved a meaningful top around 1.3483 mark. The currency had reversed sharply there after giving up more than 700 pips by last Friday. It is seen to be trading around 1.2860 levels as we write the article, and might print yet another low towards 1.2650 mark.

GBPUSD probable wave structure is as follows: The currency had dropped through multi-year lows towards 1.1414 mark in March 2020. Since then, it has remained in control of bulls and managed to carve a series of higher highs and higher lows.

The rally could be seen as a larger degree A-B-C as labelled here. The important event to note here is GBPUSD has almost taken out a major resistance at 1.3500 handle. If that is taken into consideration, bulls have clearly registered themselves and are here to stay for long.

Having said that potential remains for a bullish trend reversal as well. Either way, GBPUSD might be setting up for a meaningful corrective drop towards 1.2200 handle, before deciding on further direction. Bears might remain in control in the near term.

Also note that fibonacci 0.618 retracement of the entire rally between 1.1414 and 1.3483 is also seen towards 1.2250 mark. Hence high probability remains for a bullish turn if GBPUSD managed to drop through those levels, going forward.

Traders might be preparing to sell on a pullback rally towards 1.3200, with a protective stop above 1.3500 and projected take profits towards 1.2200/50 levels, going forward.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In