GBPUSD Resumes Lower Towards 1.1900

14 July 2020

GBPUSD might have resumed lower towards 1.1900/1.2000 levels to complete the corrective that had begun since 1.2800 highs. Bears are looking poised to remain in control from here and a break below 1.2500 would be encouraging.

The probable wave counts are as follows. GBPUSD drop from 1.2800 through 1.2250 can be sub-divided into 5 waves. The structure is that of a potential leading diagonal, marked as Wave A on the chart here.

As discussed earlier, a 5 wave structure (Motive Wave) is usually followed by a 3 wave structure (Corrective Wave) in the opposite direction. GBPUSD counter trend rally towards 1.2670 was corrective (3 waves).

Also note that the counter trend rally had terminated just above the fibonacci 0.618 retracement of Wave A, seen around 1.2600 levels. This has been labelled as potential Wave B termination on the chart here.

If the above is correct, GBPUSD should ideally stay below 1.2670, Wave B termination point and turn lower towards 1.2250 and 1.2000 respectively. Immediate price resistance is seen around 1.2800, while intermediary support is around 1.2250 levels respectively.

Traders might have initiated fresh short positions around 1.2600/50 levels yesterday. The protective stop loss would stay above 1.2800 mark and potential take profits around 1.2250, 1.2000 and further. Only a break above 1.2800 would change the structure.

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