GBPUSD Testing An Important Support Area

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The British pound traded lower against the US dollar after failing to settle above the 1.5300 resistance area. Good economic releases in the US acted as a catalyst in the near term, which pushed the US dollar higher. The GBPUSD came under pressure and traded lower. However, there are several important support levels on the way down for the pair which is acting as a hurdle for the pair. If the pair manages to hold the 1.5200 support area, then there is a possibility that the pair might trade back higher in the short term. We need to see how buyers and sellers react in the coming sessions.

There is a critical bullish trend line formed on the hourly chart of the GBPUSD pair, which is currently acting as a support for the pair. The most important point is that the pair recently found support around the 38.2% fib retracement level of the last leg from the 1.4987 low to 1.5350 high. So, there is an important support area formed around the 1.5200-10 area where the British pound buyers might take a stand. Moreover, the pair is trading well above the 100 and 200 hourly moving averages, which is a positive sign in the near term. However, one worrying sign is the fact that the hourly RSI is below the 50 might, which might give a reason to sellers to take the pair lower.

GBPUSD 02.09.2015

A break below the highlighted trend line might ignite downside pressure in the GBPUSD pair, which could take it towards the 200 hour MA.

Overall, one might consider buying dips in the GBPUSD pair as long as it is trading above the highlighted trend line.

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