GBP/USD falls seven months in a row!
In my GBP/USD analysis from November 13. I was pointed 1.5700/30 as an very important level for the pair and as I wrote then at my weekly graph, if 1.5730 broke, that level will become a strong resistance area for the pair. So it was! After the pair broke that support, pound tried to recover for 5 weeks, but it didn’t manage after wich the pair countinued to slide lower. 1.5550/600 was solid support in these 5 weeks until the begining the new year, after which the pair fall more then 200 pips in a one day at January 02. The pair opened this year at 1.5543 and close the same day at 1.5332, with low of the day at 1.5327. It seams like someone took the opportunity of the low volatility on Friday and push the pair strongly down as we could have a new support/resistance levels in new year. What now? I don’t see any major support here, not until 1.50 and 1.48 but… The pair is clearly oversold and the pair could recover anywere now. But as I use to say, trade what you see not what you think, this is not the levels where I would open my long positions. On the way up, 1.5550/600 could be a first stronger resistance.