The GBP/USD pair, as you can see, cascaded lower during the course of yesterday’s sessions, engulfing bids around psychological support 1.4500, and ending the day stamping in a vicious-looking buying tail off the back of 1.4400/1.4350.
As can be seen from both the weekly and daily charts, this recent sell-off also brought Cable into the jaws of a major weekly support level chalked up at 1.4429, which, for the time being is holding firm. This long-term level has capped downside movement on this pair since 2009, so this is certainly a key turning point to keep an eye on!
Given the significance of the weekly number, our attention will be driven toward longs today. Ideally, what we’re looking for is price to pullback from mid-level resistance 1.4450 and connect with 1.4400. Due to how quick price whipsawed through 1.4400 yesterday, there’s likely unfilled orders still present here. Therefore, should we see a lower timeframe setup form around this number today, we’d jump in long, targeting 1.4450, followed closely by 1.4500 since this number sits just below daily resistance at 1.4535.