On Tuesday, GBP strengthened against USD to close above 1.6060 – 1.6080 resistance zone representing the 23.6% Fibonacci Retracement Level of its rally from a low of 1.5267 on June 1 to its recent high of 1.6309 struck on Sept. 21.
As was already mentioned in previous report, after decisively moving above the 1.6060 - 1.6080 resistance zone the pair continued extending the short-term up-move.
The pair, on Wednesday, climbed to 1.6173 after better than expected UK jobs data and is currently quoting at 1.6163 after testing the descending trend-line resistance, currently at 1.6175.
Now should the pair manage to break above the descending trend-line resistance, the upward momentum is likely to get extended towards intermediate strong resistance zone, pegged near 1.6210 - 1.6220, which if conquered, can lead further up-move for the currency pair even beyond the very strong resistance zone near 1.63 – 1.6330 zone, September high.
On the downside, 1.6080 – 1.6060 zone now seems to act as important support for the currency pair. Immediate support on the downside is seen near 1.6130 – 1.6140 zone.
Should the pair again slip below 1.6080 – 1.6060 support zone, short-term momentum for the pair would turn bearish and the pair seems vulnerable to further downfall, initially towards 1.5910 support – 38.2% retracement level and further towards sub 1.5800 level.
Investors would watch for a decisive break above 1.6175 trend-line resistance to initiate any fresh long position. Also look for a decisive break below 1.6130 – 1.6140, immediate support zone, for opportunity to initiate momentum short position.
Haresh Menghani
Market Analyst
Admiral Markets
At any use of the analytical material taken from a site of company Admiral Markets, and the secondary publication on any other resources, the rights to intellectual property for a dealing center «Admiral Markets», the reference to a company site is obligatory.
daily technical outlook
Featured News
Add GBP (FOREX) to my watchlist
The Watchlist
RDN
RAIDEN RESOURCES LIMITED
Dusko Ljubojevic, MD
Dusko Ljubojevic
MD
SPONSORED BY The Market Online