GBP/USD – Tale of two 23.6% Fibo levels

FX:GBPUSD   British Pound/U.S. Dollar
Support – 1.4330, 1.43, 1.4236

Resistance – 1.4423, 1.4484-1.4509, 1.4551

  • Last week’s red candle marked another failure to hold above 1.4629 (23.6% of 1.7193-1.3836). Over the last six weeks, the pair has repeatedly run into offers above 1.4629 levels, leading to a weekly closing below the same. Similar thing was witnessed in Jan 2016 when the pair ran into offers at a high of 1.4669 and fell below the said Fibo level.
  • On the other hand, we have 1.4330 (23.6% of 1.5930-1.3835), which has acted as a strong support in twice in May.
  • Cable fell to a low of 1.4354 in Asia after weekend polls showed the 'leave' side picking up momentum. Another wave of GBP selling could hit the markets in Europe, taking the pair down to 1.4330-1.43 levels.
  • Break below 1.4330, preferably on a day end closing basis would open doors for 1.4150 levels.
  • On the other hand, a rebound from 1.4330 followed by a break above daily 50-MA at 1.4423 could see the pair challenge rising trend line hurdle around 1.4510 levels.
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