The concerns that the support at 1.5220/10 was a hard obstacle on the way downward as mentioned before came true. The price failed to fix itself below and began to grow. However, the trades’ advance turned out to be much more intensive than it had been predicted in the previous commentary, that’s why it got out of the range’s edges 1.5290/1.5300-1.5210/20. The price overlapped the gap, which was formed due to yesterday decline, and is checking up the endurance of 1.5400/10 now. The indicators’ values start to show the intentions of the reversal upward. That may prove greater advance of the price than the retracement within the descendant trend. This matter will obviously be settled in course of the situation concerning the breakage through the checked resistance: if the “bulls” break through the level of 1.5420/10 and return the trading into the ascendant channel (the red lines) the ascendant trend may be considered as renovated; besides, there’re also risks of advance to 1.5540/50 still yet. Meanwhile, the comeback downward out of the current degrees this time and the fixation below 1.5300 will determine the serious troubles for the GB pound for the mid-term prospects and also the probability of the exercise of the local minimums in the nearest time.

Analysis prepared by:

Arkady Nagiev
Forex4you analyst