GBPUSD Analysis: Restricted by weekly R1

Dukascopy Bank Team Dukascopy Bank SA

GBPUSD

Despite flashing bearish signals early on Monday, the Sterling managed to maintain its high positioning against the US Dollar and even push higher during the previous session.

As a result, the pair was trading near the weekly R1 and a minor trend-line at 1.4140 this morning. Apart from this resistance, the Pound is constrained by the weekly R2 and a medium-term trend at 1.42 and 1.4240, respectively.

Technical indicators have already started to move lower; thus, the given pair is expected to follow any time soon. The daily low should remain the same as yesterday—the 1.4055/80 territory where the 55-, 100– and 200-hour SMAs and the weekly PP is located.

This support is likely to provide a strong barrier for several sessions, as the 55– and 100-period SMAs on the 4H time-frame are likewise located there.

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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