FxWirePro: GBP/USD key resistance level at 1.5229, bearish in the short term

GBP/USD recovered some ground to trade around 1.5143 levels in the early US session session after rebounding from 1.5100 levels. The cable is currently trading in a choppy range in oversold condition and a short squeeze towards 1.5155 levels can be expected. The currency pair is trading below downward trend line in daily chart and pivot point located at 1.5125, therefore any raise towards 1.5125 should be viewed as selling opportunities.

• To the upside, the strong resistance can be seen at 1.5229, a break above this level would expose the cable to next resistance level at 1.5280.
• To the downside immediate support can be seen at 1.5084, a break below at this level will open the door towards next level at 1.5027.

Recommendation: Go short below 1.5125, targets 1.5050, 1.4950, SL 1.5220

Resistance Levels

R1:  1.5155 (50% Retracement level)

R2: 1.5229 (Sep 24th high)

R3: 1.5329 (Sep 29th high)

Support Levels

S1: 1.5084 (38.2% Retracement level)

S2: 1.5027 (23.6% Retracement level)

S3: 1.4938 (Jan 18th lows)