Today for our analysis we would look into the GBP/USD currency pair, which was moving sideways for some time but started going down after the American market open.
At this point the GBP/USD is headed for a steady decrease and would soon touch an area when we can start buying it safely. Of course, we should pay attention to key levels and use the support at 1.3006, which coincides with several Fibonacci factors, as guidance for our buy positions. For the upper limit of the reverse movement after touching the support, we need to focus on the resistance level at 1.3109.
In terms of technical indicators, we can very clearly see that the Stochastic one is playing with the support at 7.5%, which indicates that we would see a bullish turn soon, so we are expecting the price to rebound from the support up to the resistance we just mentioned above.
The most important thing about this pair today is that the level of 1.30 is a sort of a pivot point: if the pair drops below it, we should expect that the bears will dominate the market. However, as long as the GBP/USD rates remain above it, we can rely on the pair rebounding from the support and climbing up.
To sum up, we should place buy orders with a target of 1.3006 (our support level) and a take profit at 1.3109 (the resistance level). Just to be safe, we should also indicate our stop-loss at 1.2954.
