FxWirePro: Buy GBP/USD above 1.5580, bullish in the short term

 

• GBP/USD fell back from daily highs at 1. 5669 level after, worse than expected UK retail sales. The cable trimmed some losses after market cooled down from the impact of news. The cable is consolidating at 1.5600 levels and is all set to advance further towards 1.5640 and later 1.5680 levels.

• Pullback in the range of 1.5580 should be viewed as advantage for buying opportunities, the support level at 1.5580 is set to hold the bears and push the pair upwards.

• To the upside, the strong resistance can be seen at 1.5658(38.2 % Retracement level), a break above this level would expose to cable to next resistance level at 1.5700.

Recommendation: Go long above 1.5580, targets 1.5650, 1.5700, SL 1.5440

Resistance Levels

R1: 1.5658(38.2 % Retracement level)    

R2: 1.5707 (23.6% Retracement level)

R3: 1.5770 (June 26^th high)

Support Levels

S1:1.5580 (July 23rd lows)                                                            

S2:1.5557 (61.8% Retracement level of 1.5448 to 1.5732)

S3:1.5527 (July 21st low)