GBP/USD finds interim support near yesterday's lows

Saqib Iqbal Black Pipper Forex

The British Pound found interim support near the last day's lows and is trying to push higher. The 15-minute chart of the GBP/USD pair posted a nice bullish bar stemming from the demand zone.

The Dollar bulls have taken a breather for a while which may further support the upside in the pair. Meanwhile, the wide risk aversio mode has slowed down amid better than expected Flash PMIs of Europe released on Tuesday. However, this cannot be considered a trend reversal.

The 1-hour chart is also showing a nice uptick volume but the price is capped by a 20-hour moving average. Further action depends on the Greenback strength.

Trading scenario

If the price break above the 20-hour moving average and stays above 1.3700 mark then look for buying opportunity with a stop below the last day's low at 1.3667. Alternatively, if the price breaks below 1.3667, it will be a selling opportunity leading to a 1.3600 handle.

Author

Saqib Iqbal

Black Pipper Forex

Saqib Iqbal is a technical analyst, mentor and funds manager with nine years of experience in the industry. His trading methodology is based on institutional orderflow and volume-spread which helps to identify setups with a great return.

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