GBP/USD pair slipped to a 31-year low of 1.2685 this week, thus complicating matters for traders/investors who are unaware of the usage of Fibonacci extension tool.
This is because on the way lower from the July 2014 high of 1.7191, the currency pair has breached all of the major Fibonacci retracement levels of the multi decade rally from 1985 low of 1.11. Moreover, the current level of 1.27 is way above 1985 low, hence finding key levels between 1.27-1.11 may be a concern for tyro traders/investors.
In today’s financial weather report, Sylvain Asimus from Market Tutors explains how we can use Fibonacci extension levels on the GBP/USD monthly chart. Asimus takes note of confluence of key Fibo extension and trend line levels at 1.2460 and 1.2630.
This is a must watch video for one and all and especially for Sterling traders as it would help traders “chart the uncharted territory”.