The GBP/USD has slipped lower sharply, shedding more than 100pips after dollar rose across the board after major markets opened for the first time since Christmas break.
- The ongoing weakness is set to continue for this pair as the resistance level at 1.4874 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
- Currently the cable is hovering around major support level located at 1.4800 levels, it is set to decline further towards 1.4750 later towards 1.4700 levels in the short term.
- To the upside, the strong resistance can be seen at 1.4874, a break above this level would expose to cable to next resistance level at 1.4893.
- To the downside immediate support can be seen at 1.4800, a break below will open the door towards next level at 1.4761.
Recommendation: Go short around 1.4825, targets 1.4750, 1.4700, SL 1.4890
Resistance Levels
R1: 1.4827 (50% Retracement Level)
R2: 1.4874 (Daily highs)
R3: 1.4893 (61.8% Retracement Level)
Support Levels
S1: 1.4800 (Psychological levels)
S2: 1.4761 (38.2% Retracement Level)
S3: 1.4739 (March 29th lows)
