GBPUSD Daily
The 1:1 (Purple) and 61.8 Fib that coincided at 1.51750 has fail to attract continued selling from the bears.
The 1:1 (Purple) correction was the largest correction in the recent bear trend and the failure of this level to attract solid selling interest is an indication that the current trend is now over and the bulls look to be back in control.
With little resistance until 1.55680 where the old high and a 38.2 Fib level coincide I am expecting the short covering rally to pick up steam in the short term.
GBPUSD M30
Intraday players have been early buyers of Cable after the break above the 1:1 (Purple) with the 1:1 (Yellow) attracting aggressive buying from the bulls. The next support level to watch closely is the 1:1 (Purple) and 38.2 fib that coincide at 1.51700.
* A 1:1 refers to a current correction being equal in length to a prior correction
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Reece Marini is an FX trader and Director of the http://forexhft.com an instant Forex rebate and Signal provider, if you would like to subscribe to our daily reports you can do so here its FREE