GBP/USD key resistance at 1.5222, bearish in the short term
GBP/USD made some gains against dollar in the mid-morning US session hitting as high as 1.5125 levels before decline to trade around 1.5114 levels. On the data front, The UK will release average earnings index, claimant count change this Wednesday, and if the figures print positive reading, the cable will likely make a short pullback towards higher levels. Technically the RSI in the 4 hour chart is indicating downwards, and the 55, 30 and 20 MA’s is indicating downwards. Overall the technical indicators are depicting further downtrend for this pair.
In the meanwhile, the cable is currently trading around 1.5113 levels with oversold condition and a pullback towards 1.5180/200 levels can be expected. The currency pair is set to continue its downward momentum towards 1.4900 levels, as the pound is set to weaken against US dollar in the short term. Therefore, it’s good to sell this pair on rallies.
To the upside, the strong resistance can be seen at 1.5222, a break above this level would expose the cable to next resistance level at 1.5280.
To the downside immediate support can be seen at 1.5084, a break below at this level will open the door towards next level at 1.5025.
Recommendation: Go short around 1.5180/1.5200, targets around 1.4980/1.4950, SL 1.5280
Support levels: 1.5084 1.5025 1.4972
Resistance levels: 1.5156 1.5222 1.5281
In the meanwhile, the cable is currently trading around 1.5113 levels with oversold condition and a pullback towards 1.5180/200 levels can be expected. The currency pair is set to continue its downward momentum towards 1.4900 levels, as the pound is set to weaken against US dollar in the short term. Therefore, it’s good to sell this pair on rallies.
To the upside, the strong resistance can be seen at 1.5222, a break above this level would expose the cable to next resistance level at 1.5280.
To the downside immediate support can be seen at 1.5084, a break below at this level will open the door towards next level at 1.5025.
Recommendation: Go short around 1.5180/1.5200, targets around 1.4980/1.4950, SL 1.5280
Support levels: 1.5084 1.5025 1.4972
Resistance levels: 1.5156 1.5222 1.5281
