FxWirePro: GBP/USD rallies above 1.2250 but reversal is likely high
Thursday, January 12, 2017 3:38 PM UTC
- The GBP/USD pair rose on Thursday as the dollar fell following U.S. President-elect Donald Trump's long-awaited news briefing the day before.
- Trump delivered a wide-ranging briefing on Wednesday that lasted longer than expected but contained no details on tax cuts and infrastructure spending.
- However, further upside is expected to be limited as the pound presents negative tone and is set to resume downward momentum against the dollar.
- To the upside, the strong resistance can be seen at 1.2355, a break above this level would expose the pair towards next resistance level at 1.2405.
- To the downside, immediate support can be seen 1.2178, a break below at this level will open the door towards next level at 1.2100.
Resistance Levels
R1: 1.2292 (50 % Retracement level)
R2: 1.2355 (Jan 4th high)
R3: 1.2405 (61.8% Retracement level)
Support Levels
S1: 1.2178 (38.2% Retracement level)
S2: 1.2100 (Psychological levels)
S3: 1.2037 (23.6% Retracement level)