Almost an entire spike has been reversed and the currency pair now trades around 1.4438 levels. The rejection at 100-DMA followed by a failure to sustain above Inv. neckline is a bad news for bulls hoping for an upside break.
Resistance levels – 1.4395-1.4438, 1.45-1.4514
Support levels – 1.4306-1.4297, 1.4252, 1.4223
- GBP’s rejection at 100-DMA coupled with a fall back below Inv. neckline if followed by a daily closing below 1.4350 would open doors for a drop to 1.4252 (50% of 1.4669-1.3835) levels tomorrow.
- Note that Friday usually sees profit taking on week long trend. Cable has been on the rise since Monday; hence profit taking may be seen tomorrow.
- On the higher side, 1.4395-1.4436 resistance needs to be breached for a sustained rally towards 1.45+ levels.