GBP/USD – Major trend line resistance being put to test

23 giu 2016

Resistance – 1.4842, 1.4883, 1.4951

Support – 1.4770, 1.4739-1.47, 1.4636-1.4627

• Pair is flirting with a larger falling trend line resistance (drawn from July 2014 high – Aug 2015 high).
  

• A weekly closing above the same would signal a major trend reversal and open doors for a break above 1.50 levels.
  

• However, caution is advised since markets have priced-in ‘Bremain’ to a major extent and hence we may either see a rejection at trend line or a failed breakout, in which case the prices could fall back to 1.4636 levels.
  

• A daily closing below 1.4636 would be bearish.