GBP/USD Drops to 1.4600 on Profit-Taking
The GBP/USD pair dropped pared some of its early gains and reversed from 1.4664 to dip back towards 1.4600 round figure mark.
The current fall could be attributed to month end profit-taking after the pair's sharp up-move of over 600-pips from early April lows of 1.4009. Ahead of a slew of top-tier economic releases scheduled during the first week of a fresh month, traders might be inclined to lighten their positions and take some profits off the table.
Gregor Horvat, Chief Technical Strategist EW-Forecast notes "GBPUSD moved higher recently, above 1.4511 level which means that recovery since late February is a complex pattern; a double zigzag. However, it's a corrective black wave IV visible on higher time frames, which in fact may complete a contra-trend move earlier than we thought, but at higher levels. We are tracking a second zigzag now with red sub-wave C) in progress that could make a top then around 1.4700 area. We however will have to wait on impulsive bearish reversal before any "top in place" can be confirmed."