My previous GBP/USD signal on 20th September was not triggered, as the bearish price action took place above the resistance level which I had identified at $1.1
September that we were seeing a more bearish technical picture supported by a long-term bearish trend, with the price close to its low, strong resistance at $1.1451, and a bearishsuppressing the price. For these reasons, I was comfortable being short of this pair as I expected more downwards movement.
Over the last week, the British Pound has made a remarkable reversal, with the price of this currency pair rising by almost one thousand pips! This is a good example of how an asset moving in one direction with a very high level of volatility will often snap right back, with the same high level of volatility.
Despite the bullishness I doubt there will be a good long trade entry opportunity here today, although it is possible that the broken resistance level at $1.1217 might start to act as support.
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