- The GBP/USD has rebounded from 1.5360 levels, erasing the earlier losses, the sterling had declined earlier in the mid European market after the release of construction PMI which came in line with the forecast. In the meantime, the cable has advanced towards 1.5420 at the time of writing.
- The short term picture depicts further decline for this pair, as the RSI in the 4 hour chart is indicating downwards, the 55 MA pointing towards downwards and 30 and 20 MA is slightly bullish indicating short upward momentum. Overall the technical indicators are depicting overbought condition for the pair.
- To the upside, the strong resistance can be seen at 1.5510, a break above this level would expose the cable to next resistance level at 1.5565.
- To the downside immediate support can be seen at 1.5380, a break below at this level will open the door towards next level at 1.5330.
Support levels: 1.5380 1.5330 1.5280Resistance levels: 1.5440 1.5510 1.5565
Recommendation: Go short around 1.5450/1.5470, targets around 1.5400/1.5360, SL 1.5510
The material has been provided by InstaForex Company – www.instaforex.com