FxWirePro: GBP/USD key resistance at 1.4340, bearish in the short term
GBP/USD gained some ground on dollar initially in the early European session after UK CPI data printed positive reading better than forecasted figures at 0.2%. However, after finding resistance at 1.4340 the pair has sli…
GBP/USD gained some ground on dollar initially in the early European session after UK CPI data printed positive reading better than forecasted figures at 0.2%. However, after finding resistance at 1.4340 the pair has slipped sharply to trade around 1.4208 levels.
The ongoing weakness is set to continue for this pair as the resistance level at 1.4340 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels in the short term, therefore it's good to sell this pair on rallies.
To the upside, the strong resistance can be seen at 1.4340, a break above this level would expose the cable to next resistance level at 1.4418.
To the downside immediate support can be seen at 1.4208, a break below at this level will open the door towards next level at 1.4146.
Recommendation: Go short around 1.4250, targets 1.4180, 1.4100, SL 1.4340
