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GBP/USD – 1.5400 Level To Act As Important Pivot
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On Thursday, GBP declined for third consecutive day against USD after US second-quarter GDP growth was revised higher to 2.5% against consensus estimate
- On Thursday, GBP declined for third consecutive day against USD after US second-quarter GDP growth was revised higher to 2.5% against consensus estimate of 2.2% and higher from 1.7% previously estimated. GBPUSD currency pair still managed to hold above 1.5500 psychological level on closing basis.
- On Friday, GBP is trading at 1.5504 against USD, almost unchanged from 1.5505 on Thursday, and is headed for a second consecutive week of declines. GBPUSD currency pair, however, has gained over 2% in the month of August.
- As was mentioned in previous report, GBPUSD currency pair did witness a corrective pull-back but managed to bounce back from 1.5427 touched on Wednesday, also coinciding with low (1.5421) formed on August 14. This 1.5420 – 1.5400 zone, consisting of 200-day SMA support, 61.8% Fibonacci Retracement Level of 1.5750 – 1.4812 downfall and an ascending trend-line extending from lows formed in July and August, seems to act as important pivot point for the pair’s move in the near-future.
- Should the pair fail to hold 1.5400 area strong support, the pair seems vulnerable to further depreciation towards 1.5170 – 1.5160 support zone, marked by 38.2% retracement level, with intermediate support near 1.5280 – 1.5270 zone (50% retracement level).
- Alternatively, should the pair manage to hold and pull-back from 1.5400 support zone, the pair could move back to 1.5580 – 1.5590 zone, which now seems to act as immediate resistance on the upside.
- Should the pair manage to clear 1.5580 – 1.5590 immediate resistance zone, it could easily appreciate towards its next resistance near 1.5620 area.
- Further, on decisive break above 1.5620 resistance the pair could continue the upward momentum initially toward 1.5720 – 1.5750 strong resistance zone and then could appreciate further towards 1.5870 – 1.5890 resistance zone in the near-term.
- Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/
About the Author
Haresh Menghaniauthor
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