GBP/USD: Upside has a lid
|The cable gained some follow-through traction on Tuesday and sit just above mid-1.2900s. Nonetheless, Haresh Menghani from FXStreet sees the pair struggling to break resistance point.
Key quotes
"Any positive move is likely to confront stiff resistance near a short-term ascending trend-line support break-point, around the key 1.30 psychological mark. A convincing breakthrough the mentioned barrier, leading to a subsequent strength above the 1.3020-25 region might trigger a fresh bout of a short-covering move and lift the pair back towards testing 50-day SMA resistance near the 1.3070 region."
"Bearish traders are likely to wait for a sustained weakness below 100-day SMA, around the 1.2895 region, before positioning for any further depreciating move. The pair then might accelerate the slide further towards the 1.2830-25 horizontal support en-route the 1.2800 round-figure mark."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.