Technical analysis of GBP/USD for October 16, 2018

The GBP/USD pair continues to move upwards from the level of 1.3170. Today, the first support level is currently seen at 1.3170, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at the level of 1.3055, which coincides with the 61.8% Fibonacci retracement level. This support has been rejected three times confirming the veracity of an uptrend. According to the previous events, we expect the GBP/USD pair to trade between 1.3170 and 1.3297. So, the support stands at 1.3170, while daily resistance is found at 1.3297. Therefore, the market is likely to show signs of a bullish trend around the spot of 1.3170. In other words, buy orders are recommended above the spot of 1.3170 with the first target at the level of 1.3297; and continue towards 1.3432. However, if the GBP/USD pair fails to break through the resistance level of 1.3170 today, the market will decline further to 1.3050.

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