FxWirePro: GBP/USD approaching resistance level at 1.5500, bearish in the short term

 

 

• GBP/USD is attempting to reach resistance level at (61.8% Retracement level), the cable fell yesterday after Bank of England (BoE) 8:1 vote, with only one in favour of rate hike. The cable is trading below resistance level at 1.5550, unless and till the cable trades below this level the trend for this pair remain bearish.

• Pull back in the range of 1.5540 should be viewed as advantage for selling opportunities.

• To the upside, the strong resistance can be seen at 1.5550 (61.8% Retracement level), a break above this level would expose to cable to next resistance level at 1.5600 levels.

• To the downside immediate support can be seen at 1.5507 (July 27^th lows), a break below at this level will open the door towards next level at 1.5460 (38.2 % Retracement Level).

 

Recommendation: Go short below 1.5540, targets 1.5500, 1.5470, SL 1.5630

Resistance Levels

R1: 1.5550 (61.8% Retracement level of 1.5690 and 1.5325)

R2: 1.5590 (July 13th high)

R3: 1.600 (July 27th high)

Support Levels

S1:1.5507 (July 27^th lows)             

S2:1.5486 (Aug 7^th lows)

S3: 1.5460 (38.2 % Retracement Level)