GBP/USD edged higher in the earlier session to hit high at 1.5122 levels. However, the pair has lost some ground after UK Manufacturing PMI printed negative figures to trade around 1.5070 levels.
- Currently the price action is trying to consolidate around 1.5070 levels, nevertheless short pullback towards 1.5120 levels should be viewed as selling opportunities as the resistance level at 1.5124 is set to hold the bulls from advancing further above and push the pair towards lower levels in the short term. Therefore, it's good to sell this pair around 1.5120 levels.
- Strong support can be seen at 1.5120, a break below this level will expose the pair towards next support level located at 1.5191.
- To the upside, the strong resistance can be seen at 1.5056, a break above this level would expose the cable to next resistance level at 1.4992.
- To the downside immediate support can be seen at 1.5143, a break below at this level will open the door towards next level at 1.5089.
Recommendation: Go short below 1.5120, targets 1.5040, 1.4980, SL 1.5200
Resistance Levels
R1: 1.5124 (50% Retracement level)
R2: 1.5191 (Nov 23rd high)
R3: 1.5252 (61.8% Retracement level)
Support Levels
S1: 1.5056 (Daily lows)
S2: 1.4992 (38.2% Retracement level)
S3: 1.4937 (Jan 18th lows)
