The GBP/USD has rebounded strongly from 1.4830 levels, after upbeat UK current account deficit data released in the early European session sending the pair as high as 1.4898 levels. Market is awaiting for Core durable goods orders in a short while from the US market. An upbeat tick will put further downside pressure on the pair, also later in US session New Homes Sales data is set to be released,therefore, medium to low volatility is expected in this pair.
- Currently the cable is trading around 1.4888 levels, it is set to decline further towards 1.4800 later towards 1.4750 levels in the short term.
- To the upside, the strong resistance can be seen at 1.4903, a break above this level would expose to cable to next resistance level at 1.4951.
- To the downside immediate support can be seen at 1.4860, a break below will open the door towards next level at 1.4800.
Recommendation: Go short around 1.4900, targets 1.4800, 1.4750, SL 1.4950
Resistance Levels
R1: 1.4903 (50% Retracement Level)
R3: 1.4951 (61.8% Retracement Level)
R3: 1.5000 (Psychological Level)
Support Levels
S1: 1.4860 (Session low)
S2: 1.4800 (23.6% Retracement Level)
S3: 1.4726 (March 29th lows)
