The GBP/USD had sharply fell when its was announced that UK Prime Minister May’s gambit didn’t go as planned. The result of UK Snap election created a sell-off in the GBP and at this point we can see that GBP is sold on rallies. The current price structure along with the camarilla pivots tell me that this could be a breakaway gap. The breakaway gap indicates that a new trend is about to develop after the gap has formed outside of the previous range. Also the gap is similar to a runaway gap, where the price fails to close the gap and it just proceeds with momentum.
The gap has been formed around W H3/ M H3 pivot extending to W L3 support. The POC zone is 1.2765-85 (38.2, double top, historical sellers) and on rallies the price could drop from the zone too. First target is 1.2715 and if momentum persists we could see 1.2634. Have in mind that breakaway gap is tricky and that we might not even see the close of the gap before W H3 -1.2820 is again broken to the upside.
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M L3 – Monthly Camarilla Pivot (Monthly Interim Support)
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
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Please note that the update is posted with permission from Admiral Markets