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On Monday, GBP edged above 1.5700 against USD to hit 1.5716, strongest level after July 31.
On Tuesday, GBP rose to a high of 1.5728 against USD after UK's annual inflation unexpectedly rose to 2.6% in July. The pair is currently quoting at 1.5689, off day's high.
The pair continues to face strong resistance near 100-day and 200-day SMA at around 1.5730 level.
Moreover, the pair is likely to face strong hurdle at multiple resistance points between 1.5730 – 1.5780 zone, (200-day SMA, 100-day SMA and 50% Fibonacci Retracement Level of 1.6301 to 1.5267 move).
Should the pair decisive move and close above this multiple resistance zone, the pair could resume the up-trend towards 1.5900 level.
On the downside, 1.5660 - 38.2% Fibonacci Retracement Level is likely to provide good support for the currency pair.
Should the pair slip below 1.5660 support area, 50-day SMA on the downside at 1.5610 is likely to act as immediate support for the currency pair.
Further a break below 1.5610 would negate the formation of an ascending channel visible on 4-hourly chart and we may witness further downside for the currency pair toward 1.5525 levels.
Intraday Important Technical Levels
Support 1 – 1.5655 Resistance 1 – 1.5726
Support 2 – 1.5614 Resistance 2 – 1.5777
Support 3 – 1.5576 Resistance 3 – 1.5818
Haresh Menghani
Market Analyst
Admiral Markets
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