FxWirePro: GBP/USD remains bullish as rally continues
Tuesday, May 24, 2016 2:25 PM UTC
- The Sterling surged higher against the greenback on Tuesday, extending above 1.4600 levels its highest level in more than 4 days, before retreating back towards 1.4592 levels in the early US session.
- The GBP got a boost from growing support for those campaigning to stay in European Union and Bank of England chief made no further comments about the risk of Brexit vote next month.
- Further decline is expected to be limited as the support level at 1.4546 levels is set to hold the bears from falling further below, and bring a rebound towards higher levels, therefore it’s good to buy on dips.
- To the upside, the strong resistance can be seen at 1.4656, a break above this level would expose to cable to next resistance level at 1.4700.
- To the downside major support can be seen at 1.4588, a break below will open the door towards next level at 1.4546.
Resistance Levels
R1: 1.4621 (50% Retracement Level)
R2: 1.4656 (61.8% Retracement Level)
R3: 1.4700 (Psychological levels)
Support Levels
S1: 1.4588 (38.2% Retracement Levels)
S2: 1.4546 (23.6% Retracement Levels)
S3: 1.4481 (Daily lows)