GBP/USD Attempting to Reclaim 1.4600 Mark

GBP/USD Attempting to Reclaim 1.4600 Mark

28 April 2016, 09:56
Roberto Jacobs

GBP/USD Attempting to Reclaim 1.4600 Mark

The GBP/USD pair has been trading in a range below 1.4600 level, as it awaits for fresh triggers to build on the recent gains.

Declining fears of a 'Brexit' has been the key trigger for pair's recent up-move. On H4 chart, the pair has been trading within a well-established ascending trend-channel and extending its recent up-move the pair, earlier during the week, tested the trend-channel resistance near 1.4640-50 resistance area, also coinciding with 38.2% Fibonacci retracement level of 1.5930-1.3835 fall.

Traders will now take cues from today's release of US advance GDP print for the first quarter of 2016.

Technical levels to watch

From current levels the pair could possibly attempt to move past 1.4600 handle, which if cleared decisively should aim for retesting 1.4635-40 resistance. A clear break-through the 1.4635-40 resistance should set the stage for continuation of the pair's near-term upward trajectory, possibly towards the ascending trend-channel resistance that currently stands near 1.4745-50 region.

On the flip side, weakness below 1.4550 level now seems to find immediate support near 1.4525 area. Even if the pair slips below this immediate support levels, any further downside now seems to be limited by the ascending trend-channel support, currently near 1.4500 round figure mark. Only a decisive break below 1.4500 mark might now negate the pair's near-term bullish outlook.


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