After the sharp drop that occurred during the Asian session yesterday, the GBP/USD pair found a good support around 1.2350 – 1.2400 and climbed with 180 pips at the very beginning of the European one.
After a correction of about 90 pips today the pair found another good support at 1.2475 and continued rising, but until now it has not broken above yesterday’s high at 1.25462. The new high is only three pips higher than the last at 1.25494. Obviously the resistance at 1.2550 is quite strong and in order to continue rising the pair will need to form another correction.
Still, if we examine the daily time frame, we could suppose that the GBP will most likely move to the upside, where the next strong resistance level is at 1.2750. During the five month long range after the big GBP drop on 7th October 2016 that level was tested four times, but GBP/USD still hasn’t broken above it yet.
We are about to find out whether it will remain that way this time too.
Taking note of key levels to keep track and follow up.
ReplyDeleteExcellent analysis as usual!
ReplyDeleteVery nice tip I'll keep an eye on the currency pair
ReplyDeleteThat's good to know, thank you.
ReplyDeleteVery useful information! Thanks.
ReplyDeleteInformative, thanks.
ReplyDeleteGood post!
ReplyDeleteGood insight.
ReplyDeleteDownside is limited.
ReplyDelete