GBPUSD is trading around 1.3525 after reaching as high as 1.3626. Price reached important Fibonacci resistance as we mentioned in a previous post. Price got rejected at the 61.8% Fibonacci level. Bulls now want to see price form a higher low. Where can this decline stop?
GBPUSD has most probably completed the upward move from 1.3356. Price is now pulling back. The big question is whether we will see a higher low and the resumption of the up trend or this upward move was just a pause to the longer-term downward trend from 1.4247.
Black lines- Fibonacci retracements
Short-term support by the Fibonacci retracement levels is found at 1.3459. Around this price level or above it, we should see this decline stop, in order to hope for a bigger move higher. If price fails to hold above this support area, we should expect more downside to come, even below 1.34.