FxWirePro: GBP/USD rally capped by 100-day moving average, outlook bearish

The British Pound edged higher following the release of the UK Manufacturing PMI. The UK Manufacturing PMI grew 52.9 during the period, better than the 51.8% expectation. 
 

• The GBP/USD pair edged higher immediately towards 1.4307 after the release, but quickly declined towards 1.4262 levels. The pair traded as low as 1.4250, before recovering towards 1.4300 levels in the mid European trading hours.
   
• At the moment the pair is trading around 1.4300 levels and it is expected to decline further towards 1.4250 and 1.4200 levels as the resistance level at 1.4335 is set to hold the bulls from advancing further, and bring a decline towards lower levels in the short term.
   
• Technically in the 4 hour chart the 55, 30 and 20 MA depicts slightly bearish trend, the RSI is neutral at 50.
   
• To the upside, the strong resistance can be seen at 1.4335, a break above this level would expose the pair to next resistance level at 1.4365 levels.
   
• To the downside strong support can be seen at 1.4240, a break below at this level will open the door towards next level at 1.4200.
  
  Recommendation: Go short around 1.4330, targets around 1.4250/1.4200, SL 1.3380
  
  Support levels: 1.4280, 1.4240, 1.4200
  
  Resistance levels: 1.4335, 1.4365, 1.4395