GBP/USD Gains Some Upside Momentum But Still Bearish

GBP/USD Gains Some Upside Momentum But Still Bearish

16 May 2016, 19:09
Roberto Jacobs
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GBP/USD Gains Some Upside Momentum But Still Bearish

  • The British pound has made short squeeze against US dollar by hitting high at 1.4406 during mid-morning US session, after the pair found support at 1.4333. 
  • However, the gains should be limited as the resistance level at 1.4427 is set to hold the bulls from advancing further, and bring a decline towards lower levels in the short term, therefore it’s good to sell this pair on rallies. 
  • To the upside, the strong resistance can be seen at 1.4427, a break above this level would take the pair towards next resistance level at 1.4470 levels. 
  • To the downside immediate support can be seen at 1.4348 levels, a break below this level will open the door towards next level at 1.4300. Resistance Levels R1: 1.4427 (50% Retracement level) R2: 1.4470 (May 11th high) R3: 1.4507 (61.8% Retracement level) Support Levels S1: 1.4348 (38.2% Retracement level) S2: 1.4300 (Psychological levels) S3: 1.4245 (23.6% Retracement level)



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