GBP/USD: Cable Bulls Attempt to Hold Higher-Low Fibonacci Support

GBP/USD Talking Points:

The British Pound has had an interesting day already, first bouncing higher after the release of stronger-than-expected inflation numbers from the month of August. This was then followed by a full reversal of those prior gains as negative Brexit headlines began to show. At this point, prices have stabilized while trying to build support around a key Fibonacci level at 1.3117.

– This may be setting up a bull trap, however, and buyers might want to wait for a deeper pullback before looking to take on top-side exposure: And there is another side to the argument, as prices have begun to test below the bullish trend-line that can be taken from the lows over the past two weeks. As we previously pointed out – this may be part of a rising wedge formation that will often be looked to for bearish reversals. It’s still early, and traders would likely want to proceed with a bullish bias until lower-lows begin to show, but that bearish potential is building and, if coupled with more negative Brexit headlines, could soon

Article source: https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2018/09/19/gbpusd-bulls-attempt-to-hold-price-at-fibonacci-chart-support-forecast-outlook-srepstans.html