FxWirePro: Cable's Break-Out of Resistance at 1.4573 Questionable for Sustenance
Breaks resistance at 1.4573 levels but could not sustain the rallies.
So, can this be another opportunity for shorts in GBPUSD?
Breaks resistance at 1.4573 levels but sustenance is questionable, but don’t jump into conclusion wait for confirmation.
On the contrary, even if Fed disappoints with any shocking messages, bulls can extend momentum for maximum potential upto 1.4645 levels that is where the major resistance is seen.
But for now, the bulls seem to be exhausted on minor resistance at 1.4573.
Cable has been closely observed and levels at 1.4573 and 1.4385 are considered as supply zones.
RSI: Currently, RSI (14) trending at 65 levels is highly indecisive as there is no clarity about the trend from this oscillator, on closing basis movement should be closely watched if it suggests downward signals.
Stochastic: The slow stochastic curves reach overbought trajectory but still no overbought signals have been generated amid an attempt of %D crossover.
Sterling rose to April highs against the weaker dollar but unable to clear sloping channel resistance on monthly charts.
What could we interpret price line when stochastic oscillator remains in & around oversold zone since August 2015, which is just entering in overbought zone, with the U.K. currency’s value considered a leading barometer of market fears over Britain exiting the EU this summer.
Subsiding, though still elevated, Brexit risk buoyed the pound, a gain that saw added traction as GBPUSD followed in the stronger EURUSD’s footsteps.
On a concluding note, as a result of above technical and fundamental incidents anytime bears may resume in the days to come, one can initiate shorts in near month futures of this pair for bearish targets towards 1.4408 levels with strict stop loss at 1.4620.
The material has been provided by InstaForex Company - www.instaforex.com