GBP/USD Analysis: Strong resistance ahead

Dukascopy Bank Team Dukascopy Bank SA

Following a four-day decline against the US Dollar, the Sterling managed to recover some of its lost positions on Tuesday. As a result, it breached the 55-hour SMA, but was nevertheless limited by the monthly PP at the psychological 1.40 mark.

An upside breakout of the 55-hour moving average sends bullish signals, thus suggesting that this recovery is likely to continue during the remaining part of the week, as well.

This session, however, should not produce large gains due to a strong resistance cluster located at 1.4050. Apart from the 100-hour SMA and a breached senior channel, the 55-day SMA is likewise located in this area.

This might either set the Pound for a movement sideways or another fall down to the weekly or monthly S1s at 1.3875 and 1.3740, respectively.

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.4075
2. R2 1.4032
3. R1 1.4005
PP 1.3962
1. S1 1.3935
2. S2 1.3891
3. S3 1.3864

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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