Fxwirepro: Gbp/usd Recovery capped at 1.5437, Strong Support at 1.5366 (200dma)

  • USD has managed to keep losses under check even though major European indices are trading in the red
  • Cable hit a 6wk low of 1.5336 on Friday and has recovered 101pips since then supported by gains in EUR/USD
  • GBP/USD is currently trading at 1.5398, amid low volumes on account of the bank holiday in London
  • Daily momentum remains negative, reinforcing the bearish bias, but failure to close below the 200-DMA a slight worry for bears
  • Immediate resistance for cable located at 1.5429 (Hourly cloud top), ahead of 1.5442 (Daily High Aug 28) and then 100DMA at 1.5486
  • Minor support on the downside is seen at 1.5381 (Session Low Aug 31), breach below could take the pair to 1.5366 (200 DMA)

Resistance Levels:R1: 1.5429 (Hourly cloud top)R2: 1.5442 (Daily High Aug 28)R3: 1.5486 (100-Day MA)R4: 1.5550 (Daily Cloud Base)Support Levels:S1: 1.5381 (Session Low Aug 31)S2: 1.5336 (Daily Low Aug 28, 200 DMA)S3: 1.5330 (Daily Low Jul 8)

The material has been provided by InstaForex Company – www.instaforex.com

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