GBP/USD Stages A Corrective Rally
Earlier this week, I took note of the retracement levels of the recent down leg of the current GBP/USD bear trend. Today’s price action marks the pair’s first attempt to correct price since the GBP/USD made new lows at 1.4230. Despite cable’s big move today to the upside, it fell short of the 1.4500 whole number with the high today at 1.4465.
Studying Fibonacci lines on today’s price action, cable can correct as low as 1.4320 and still maintain the intraday up trend. I think the pair maintains a bullish bias until it corrects to the 38.2% retracement level on the daily chart.
Trade what you see, not what I think!