Forex Marketz Daily Forex News – Fully Markets Update
GBP/USD (1.5839)
- Resistance Levels: 1.5895, 1.5990, 1.6180
- Support Levels: 1.5680, 1.5530, 1.5370
The Sterling, or the British Pound, has been gaining some ground versus the U.S. Dollar. This move has been very cautious as traders are still hesitant with fully committing to buying. Last week, the price of the GBP/USD hit a 14 month low, then we recovered. Let’s look at some technical analysis, and for that please refer to the above daily MT 4 chart.
We note near term resistance at a cluster zone from 1.5870 ending at 1.5895. We need a daily close above this zone to challenge 1.5990. The alternative view, if sellers enter the mix, we see a cluster zone from 1.5721 ending at 1.5680. A break below this area will send the Pound lower for a test of 1.5530 then 1.5520 and lower.
Trading strategy, a little advice. First off, turn your attention to the below 4 hour MT 4 chart. Note the possible formation of a bearish engulfing candlestick. If this is confirmed, with a daily close lower, then we have a clear bearish reversal sign. One might be wanting to enter a short trade, but for right now, I am going to continue to wait. Why? This week, on Wednesday, the Bank of England is going to release its quarterly inflation number. This is a policy defining release. Therefore, waiting for its release, which will determine direction better, is prudent.
Please remember, trading strategy is for educational purposes only, and does not constitute trading advice.
