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FxWirePro: GBP/USD rebounds towards 1.4425 but upside is limited

GBP/USD recovered some ground in the early European session as the pair got support around 1.5380 levels. However, short rally towards 1.4484 met selling interest. There were no major data releases from UK, but on Wednes…

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FxWirePro: GBP/USD rebounds towards 1.4425 but upside is limited
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GBP/USD recovered some ground in the early European session as the pair got support around 1.5380 levels. However, short rally towards 1.4484 met selling interest. There were no major data releases from UK, but on Wednesday manufacturing production is set to released which is expected to print at 0.1%.

  • Currency pair is trading below downward trend line in 4 hour chart and daily pivot point at 1.4444 which suggests further decline can be seen in the coming sessions.
     
  • To the upside, the strong resistance can be seen at 1.4451 a break above this level would expose to cable to next resistance level at 1.4482.
     
  • To the downside immediate support can be seen at 1.4380, a break below will open the door towards next level at 1.4307.

    Recommendation: Go short around 1.4451, targets 1.4380, 1.4300, SL 1.4530

    Resistance Levels

    R1: 1.4451 (61.8% Retracement Level)

    R2: 1.4482 (Daily highs)

    R3: 1.4544 (Feb 8th high)

    Support Levels

    S1: 1.4380 (50% Retracement Level)

    S2: 1.4307 (38.2% Retracement Level)

    S3: 1.4220 (23.6% Retracement Level)

 

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