I mentioned the GBPUSD on Tuesday noting that a daily close above 1.2410/20 could offer a buying opportunity. Not only did buyers manage a close above this area, but they also held their ground on Wednesday with a session low of 1.2422.
With the pair firmly above the (former) confluence of resistance at 1.2410, I suspect any retest of the area will attract buyers.
Note that we could see some volatility from the pound this Wednesday due to Article 50. I never trade the news but knowing that this event could spark unfavorable conditions is enough to keep me sidelined for now.
The next minor level of resistance comes in at the February 24th high of 1.2568. Beyond that, we have the current 2017 high near 1.2670. Alternatively, a daily close back below the 1.2410 area would negate the somewhat bullish outlook.
Price 1.2410 is 50% retracement of the highest price 2. February to the lowest price 14. March.
Check the upside technical analysis.
Performed by analytical expert: Urban Stamcar
With the pair firmly above the (former) confluence of resistance at 1.2410, I suspect any retest of the area will attract buyers.
Note that we could see some volatility from the pound this Wednesday due to Article 50. I never trade the news but knowing that this event could spark unfavorable conditions is enough to keep me sidelined for now.
The next minor level of resistance comes in at the February 24th high of 1.2568. Beyond that, we have the current 2017 high near 1.2670. Alternatively, a daily close back below the 1.2410 area would negate the somewhat bullish outlook.
Price 1.2410 is 50% retracement of the highest price 2. February to the lowest price 14. March.
Check the upside technical analysis.
Performed by analytical expert: Urban Stamcar