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The British pound is finally showing some signs of life against the US dollar. It looks like breaking an important resistance area and if it manages to settle above the 100 hour moving average, then the GBPUSD pair might surge higher in the short term. The 1.5560-80 area is a major resistance zone for the pair and if buyers clear it successfully, then it would be a bullish sign. There is no economic release lined up in the London today, which means most action might be dependent on how the US dollar trades during the coming sessions.
There was a bearish trend line formed on the hourly chart of the GBPUSD pair, which looks like breached by the British pound buyers. However, the pair is currently struggling around an important resistance area, which is around the 100 hour moving average. The 50% fib retracement level of the last drop from the 1.5564 high to 1.5484 low is also around the same MA. So, the 1.5575-80 area represents a major hurdle for buyers in the short term. If they manage to break it, then the pair might head towards the 200 hour moving average, which is sitting around the 76.4% fib retracement level. One bullish sign to note is the fact that the hourly RSI is now above the 50 level.
On the downside, if the pair moves lower from the current levels, then the broken trend line might act as a support for the pair.
Overall, one might consider buying dips as long as the pair is above the 1.5540-20 support area.