GBP/USD flirts with trend line resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 24, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD extended gains above 1.49 levels and is now flirting with the trend line resistance (trend line drawn from Sep 4 low to Sep 30 low).

    Rejected at 1.4937

    The cable clocked a high of 1.4937 before trimming gains slightly to trade around 1.4920 levels. Today’s gains could be attributed to the unwinding of the most favoured trade throughout 2015 – USD longs.

    Trading activity may pretty much come a halt now as markets in the UK, France and the Netherlands are scheduled to close early, while Germany, Switzerland and Italy are shut all day.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4954 (hourly 200-MA), above which the spot could target 1.50 levels. On the other hand, a break below 1.4888 (76.4% of Apr-Jun rally) would open doors for a drop to 1.4858 (daily low).
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