GBP/USD Attempting a Move Past 20-DMA Resistance

GBP/USD Attempting a Move Past 20-DMA Resistance

10 May 2016, 09:08
Roberto Jacobs

GBP/USD Attempting a Move Past 20-DMA Resistance

The GBP/USD pair maintained its bid tone above 1.4400 pivot point, lifting the pair back to day's peak level of 1.4428 during early European session.

With major releases scheduled for release on Tuesday and given the recent bout of volatility in the pair, investors are unlikely to build on to their long positions and remain on sideline ahead of BOE Super Thursday later during the week.

On H1 chart, the pair remains within a short-term descending trend-channel formation and has now inching higher from an important point within the channel. On a sustained move above day's high, also coinciding with 20-day SMA, the pair is likely to witness some intraday movement on the upside.

Technical levels to watch

Momentum above 1.4425-30 is likely to get extended towards the trend-channel resistance near 1.4480 level, coinciding with high touched on Monday and also nearing 38.2% Fibonacci retracement level of 1.4009-1.4770 up-move. On a decisive break through the 1.4480 resistance, marking a break-out of the descending channel might increase the prospects of further up-move for the pair.

On the flip side, reversal back below 1.4400 handle the could witness some additional selling pressure towards testing the descending trend-channel support, currently near 1.4340 with Monday's low, near 1.4375 level, acting as intermediate support.


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