GBP/USD buoyed by a crucial support level.

GBP/USD fell in the short term, pressured negatively by the downward trend in the short term along the trend line, along with the pair's continuous movements below the simple moving average for the last 50 day period, reaching with that decline the crucial support level of 1.4887, which represents the ratio 76.4% of Fibonacci retracement levels for an ascending wave in the medium term (from 1.4565 to 1.5930); with the pair getting stuck again at the level for the second consecutive day, along with the beginning of the forming of a positive divergence in the Stochastic indicator as shown below the attached chart.

 

We therefore expect the pair to rise, as long as the support of 1.4887 holds on, targeting thereafter the resistance of 1.5087 for another test, which represents the ratio 61.8 of the same retracement levels mentioned earlier.