GBP/USD recovered sharply to 1.2915 in yesterday’s session after having made a low of 1.2843.  But the recovery seems to be fading away amid the post Brexit and Fiscal stimulus issues. Currently, the pair is trading at 1.2910, the immediate resistance is at 1.2870 other resistances are present at 1.2855 and 1.2830. The intraday resistance is at 1.2960 while the 1.3000 is a turning out to be a stiff resistance area.

So far the pair is keeping above the mid-Bollinger band while the upper band’s resistance area is at 1.3022. The SMA-50 is also indicating resistance at 1.3029. The SMA-21 is however showing a support area at 1.22861. The RSI on the intraday scale is below the neutral zone and appears to be taking a further dip. Multi time frame analysis suggests that the weekly price pattern continues to remain bearish. The intraday and 4-hourly charts are also presenting a bearish picture. Currently, the pair is good to sell on rallies, a decent selling level would at or near 1.2940 with a small target of 50 to 60 pips. A tight stop-loss for this trade would be at 1.2985.

Only an intraday closing above 1.3000 would set a clear upwards direction. Price action below 1.2900 would continue to support to the bears and an intraday closing below 1.2830 would further raise the possibilities of a drop towards 1.2670.


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By LCMS Traders FX Analysis Team

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