GBPUSD Facing A Monster Resistance

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There British pound managed to recover some ground against the US dollar this past week, but later it failed to maintain the momentum. The economic releases in the US were mixed, which caused a bit of downside momentum. There looks a possibility that the GBPUSD pair might head lower one more time as buyers were seen struggling in the near term. In the UK today, the Mortgage Approvals representing the number of various Mortgage Approvals will be released by the Bank of England. Let us see how the outcome falls in into place, as the market is expecting it to post a reading of 62.000K, up from the last reading.

There is a major bearish trend line formed on the hourly chart of the GBPUSD pair, which is protecting the upside in the pair. Every time buyers took the pair higher the trend line stalled the upside. The 61.8% fib retracement level of the last leg from the 1.4993 high to 1.4795 low is also sitting around the same area. Moreover, the 100 hour simple moving average is aligned just below the highlighted trend line. So, the pair might find a lot of sellers at 1.4880-90 area if it trades higher in the near term. A break above the trend line and resistance area might ignite a bullish pressure on the pair, and could take it towards the 1.4920 levels.

GBPUSD 03.30.2015

On the downside, the most important support is around the 200 hour SMA where buyers might take a stand.

Overall, one might consider selling rallies in the GBPUSD pair as long as it stays below the highlighted trend line.

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