GBP/USD rebounds at the 38.2% Fib level – Further upside potential
The sterling lost significant ground against the greenback this week, with the bears dragging the cable all the way down to 1.542 (38.2% Fibonacci level from January high to March low) before bouncing back to form a hammer on the daily chart. At 1.5485 at the time of writing, the GBP/USD started the day in a negative mood, but the bears seem unable to find enough momentum to push the pair lower. We expect the market to continue its bounce all the way up to the 50% Fibonacci level at 1.56. Watch for a consistent break above the top of the hammer at 1.5513 for confirmation of the upside potential. In the alternative scenario, we will have to see a break below the 38.2% Fibonacci level in order to reconsider our outlook in the market.
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