GBP/USD: The Pair is Unlikely to Exceed the Level of 1.4300

GBP/USD: The Pair is Unlikely to Exceed the Level of 1.4300

On the daily chart the rise in the pair GBP/USD is prevented by two strong resistance levels of 1.4300 (ЕМА50), 1.4385 (Fibonacci 38.2% to the decline from the level of 1.5230 since mid-December 2015).

Since the beginning of this week the pair has moved in the upward channel on the daily chart, consolidating above two resistance levels of 1.4185 (Fibonacci 23.6%) and 1.4240 (ЕМА200 on 4-hour chart).

The Pound is under pressure from uncertainty about the outcome of the referendum on the EK membership in the EU, which will take place at the end of June.
Recent terrorist bombings in Belgium and problems related to the migration in Eurozone increase the number of supporters of the UK exit from the EU.

On the daily, weekly and 4-hour chart the indicators OsMA and Stochastic recommend to open long positions, however the rise in the pair above the levels of 1.4300 and 1.4385 is unlikely in advance of the meeting of the Bank of England.

Now, the pair is below the level of 1.4625 (ЕМА144 on the daily chart). Downtrend will continue. The rise to the line 1.4625, (which is crossed by the upper limit of the ascending channel on the daily chart), will be prevented by strong resistance levels of 1.4460 and 1.4545 (Fibonacci 50%). Consolidation of the price below support level of 1.4185 (Fibonacci 23.6%) may bring the pair back to the downtrend and further down to 1.3860 (lows of the year).

Support levels: 1.4240, 1.4185, 1.4100 and 1.4045.
Resistance levels: 1.4300, 1.4385, 1.4460, 1.4545 and 1.4625.

Trading tips

Sell Stop: 1.4230. Stop-Loss: 1.4270. Take-Profit: 1.4185, 1.4100 and 1.4045.
Buy Stop: 1.4340. Stop-Loss: 1.4290. Take-Profit: 1.4385, 1.4400, 1.4460, 1.4500, 1.4545 and 1.4600.

The material has been provided by LiteForex - Finance Services Company - www.liteforex.com