GBP/USD recovered some ground on Wednesday, as the pair rebounded from seven year lows after data showed the British unemployment dropped to lowest in a decade. The pair rebounded in quick succession after the data was released. However,upside was limited as the pair found resistance at 1.4219 levels and declined to trade around 1.4167 levels.
- The currency pair is trading below downward trend line in 4 hour chart and pivot point located at 1.4231 which suggests further bearishness for this pair. Therefore it's good to sell this pair on rallies.
- To the upside, the strong resistance can be seen at 1.4283, a break above this level would expose the pair towards next resistance level at 1.4342.
- To the downside immediate support can be seen at 1.4166, a break below at this level will open the door towards next level at 1.4100.
Recommendation: Go short around 1.4215, targets 1.4150, 1.4100, SL 1.4300
Resistance Levels
R1: 1.4219 (50% Retracement level)
R2: 1.4283 (61.8% Retracement level)
R3: 1.4342 (Jan 19th high)
Support Levels
S1: 1.4166 (38.2 % Retracement level)
S2: 1.4100 (23.6 % Retracement level)
S3: 1.4040
