GBP/USD tests 50% Fibo at 1.3485
GBP/USD tests 50% Fibo at 1.3485
In essence, the past 24 hour the cable spent testing different support levels. In first hours of this trading session, it bypassed the weekly S1 and now is trying to pave the path through another support area located between the 1.3497 and 1.3491 marks. Despite an active pressure, these attempts most probably will fail because of the barrier formed by the 50% Fibonacci retracement level located at 1.3485 and the bottom trend-line of a junior descending channel. On the other hand, due to anticipation of the upcoming data releases the pair might prematurely reach the monthly PP at 1.3458. As largest part of pending orders in 50-pip range is set to buy, the currency rate, generally, is expected to make a rebound near one of the above support levels.
In essence, the past 24 hour the cable spent testing different support levels. In first hours of this trading session, it bypassed the weekly S1 and now is trying to pave the path through another support area located between the 1.3497 and 1.3491 marks. Despite an active pressure, these attempts most probably will fail because of the barrier formed by the 50% Fibonacci retracement level located at 1.3485 and the bottom trend-line of a junior descending channel. On the other hand, due to anticipation of the upcoming data releases the pair might prematurely reach the monthly PP at 1.3458. As largest part of pending orders in 50-pip range is set to buy, the currency rate, generally, is expected to make a rebound near one of the above support levels.
In first half of yesterday’s trading session the currency rate reached support level formed by the bottom trend-line of a junior descending channel and monthly PP at 1.3458. However, the subsequent release of the ECB Minutes and the US PPI weakened the Dollar and elevated the rate back to the weekly PP.
As the 55-, 100- and 200-hour SMAs turned into support, until release of the American macroeconomic data the British Pound most probably will continue paving path to the north. In this regard, a number of technical indicators suggest that closest resistance levels are located at 1.3585 and 1.3606. However, if assumption about existence of a two-weak long descending channel is correct, the pair should not surge above the 1.3560 mark.