12 Dec 2014
GBP/USD likely to test 1.5681 levels – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, the GBP/USD pair is likely to test the trendline support at 1.5681 due to failure to rise above the resistance at 1.5730-40 levels.
Key Quotes
“The GBP/USD pair finished marginally higher on Thursday after recovering from the 5-DMA support located yesterday at 1.5662 levels. However, the pair has failed to extend gains today as it trades largely unchanged at 1.5724 levels, despite the positive crossover between 5-DMA and 10-DMA.”
“Meanwhile, on the hourly charts, the pair is hovering between the trend line resistance and support located at 1.5740 and 1.5681 levels respectively. Given the early failure to rise above 1.5730-40 levels, we are more likely to see the pair test 1.5681 levels during the European session.”
“Moreover, the sell-off would be rapid once the pair falls below the 23.6% retracement level of the uptrend on the hourly chart located at 1.5707. This would also push the hourly RSI below 50.00 levels, opening doors for a further downside towards 1.5670 and 1.5650 levels.”
“However, the 5-DMA and the 10-DMA are also located in the range of 1.5693-1.5677 levels. Hence the sell-off is likely to be restricted around these levels today. On the other hand, a fresh demand for Pounds can be anticipated above 1.5740 levels. The immediate upside appears capped around 1.5760-1.5780 levels.”
Key Quotes
“The GBP/USD pair finished marginally higher on Thursday after recovering from the 5-DMA support located yesterday at 1.5662 levels. However, the pair has failed to extend gains today as it trades largely unchanged at 1.5724 levels, despite the positive crossover between 5-DMA and 10-DMA.”
“Meanwhile, on the hourly charts, the pair is hovering between the trend line resistance and support located at 1.5740 and 1.5681 levels respectively. Given the early failure to rise above 1.5730-40 levels, we are more likely to see the pair test 1.5681 levels during the European session.”
“Moreover, the sell-off would be rapid once the pair falls below the 23.6% retracement level of the uptrend on the hourly chart located at 1.5707. This would also push the hourly RSI below 50.00 levels, opening doors for a further downside towards 1.5670 and 1.5650 levels.”
“However, the 5-DMA and the 10-DMA are also located in the range of 1.5693-1.5677 levels. Hence the sell-off is likely to be restricted around these levels today. On the other hand, a fresh demand for Pounds can be anticipated above 1.5740 levels. The immediate upside appears capped around 1.5760-1.5780 levels.”