A breakdown of the important short-term resistance level and the upper border of the range (between the levels of 1.3800 and 1.3914) will be a signal for renewed buys. And an increase in the zone above the resistance levels of 1.3970 (Fibonacci level 38.2% of the correction to the decline of the pair in the wave that began in July 2014 near the level of 1.7200), 1.4000 (local resistance level) will indicate the resumption of the GBP/USD bullish trend.

In an alternative scenario and after the breakdown of the support levels 1.3800, 1.395 GBP/USD may decline to the support levels 1.3320, 1.3210 (Fibonacci level 23.6%). Their breakdown will increase the risks of a resumption of the global bearish trend in GBP/USD.

Trading recommendations

Sell Stop 1.3790. Stop-Loss 1.3930. Take-Profit 1.3700, 1.3600, 1.3320, 1.3210
Buy Stop 1.3930. Stop-Loss 1.3790. Take-Profit 1.3970, 1.4000, 1.4100, 1.4200, 1.4240, 1.4300, 1.4350, 1.4440, 1.4580, 1.4830

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