Fxwirepro: Gbp/usd Downtrend Loses Momentum, But Outlook Still Strongly Bearish

  • The Cable has slipped backwards from 1.4847 levels to hit low at 1.4793 in early the US Session. However, after negative home sales data the pair rebounded back in quick succession and erased the earlier losses to trade at 1.4827 levels. 
  • Currency pair is trading below downward trend line in daily chart and daily pivot point at 1. 4841 which suggests further bearish momentum towards downwards can be seen in the coming sessions.
  • Currently the cable is trading around 1.4847 levels, it is set to decline further towards 1.4750 later towards 1.4700 levels in the short term.
  • To the upside, the strong resistance can be seen at 1.4893, a break above this level would expose to cable to next resistance level at 1.4953.
  • To the downside immediate support can be seen at 1.4800, a break below will open the door towards next level at 1.4761.Recommendation: Go short around 1.4840, targets 1.4750, 1.4700, SL 1.4890Resistance LevelsR1: 1.4830 (50% Retracement Level)R2: 1.4847 (Daily highs)R3: 1.4893 (61.8% Retracement Level)Support LevelsS1: 1.4800 (Psychological levels)S2: 1.4761 (38.2% Retracement Level)S3: 1.4739 (March 29th lows)

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