FXStreet (Barcelona) – With GBP/USD rebound seeing a pause around the 1.5500/50 resistance, failure to break above this will shift focus to 1.5208/1.5173 area, according to Karen Jones, Head of Technical Analysis at Commerzbank.
Key Quotes
“GBP/USD has seen a strong rebound into the 1.5500/50 resistance and is pausing here very near term. While capped here, attention remains on support at 1.5208/1.5173, the June low and, 55 week ma and 55 day ma. Tough resistance lies 1.5550, this is the location of the February high. Yesterdays move looked and felt directional and above here will trigger a move to the 1.5813 May high.”
“Support at 1.5190/73 remains the breakdown point to the May low at 1.5121 and 1.5043 61.8% retracement.”
“It should be noted that our outlook has become increasingly negative medium to longer term for GBP/USD and below the 1.5173 55 week ma the market should sell off hard.”
“Current trade: Short 1.5500 Recommended Trade: Stops over 1.5555.”
(Market News Provided by FXstreet)