GBP/USD Bullish Momentum Continues, 1.4600 a Whisker Away

GBP/USD Bullish Momentum Continues, 1.4600 a Whisker Away

18 May 2016, 15:42
Roberto Jacobs

GBP/USD Bullish Momentum Continues, 1.4600 a Whisker Away

The GBP/USD pair kept its momentum going after GBP bulls got a boost from the latest 'Brexit' poll results, lifting the pair to the vicinity of 1.4600 handle.

At the time of writing, the pair was trading at 1.4590, up 0.9% for the day and nearly 190-pips off day's through level of 1.4403. Bears rushed to cover their short positions after the pair surged past 1.4500 handle and subsequently broke through 1.4530-40 strong horizontal resistance.

Moreover, fresh bids continued to lift the pair towards reclaiming 1.4600 handle but any further up-move now seems to be restricted ahead of the key Fed minutes that might keep traders cautious at higher levels and might turn the sentiment upside down.

Technical levels to watch

With hourly RSI already indicating slightly overbought conditions, the bulls are likely to take a breather near 1.4600 handle. However, a renewed bout of buying interest would be enough to assist the pair in pushing through 1.4600 handle and extend its upward trajectory towards recent daily closing high level resistance near 1.4670-75 area.

On the flip side, the pair should now be able to defend the 1.4530-40 resistance break-point turned immediate support. Given the intensity of the rally, weakness below 1.4530-40 support might force traders to take some profits off the table, dragging the pair back below 1.4500 handle.


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