GBP/USD Analysis: Could trade sideways

Dukascopy Bank Team Dukascopy Bank SA

GBPUSD

During Thursday, the GBP/USD exchange rate raised to the resistance level formed by the weekly PP and the monthly S1 located circa 1.2540. During today's morning, the rate was testing the given resistance.

If the given resistance level holds, it is expected, that the currency pair could go downwards. However, note, that the pair has to surpass the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly S1 in the 1.2471/1.2495 range.

On the other hand, it is expected, that the rate could trade sideways between the given support and resistance in the short term.

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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