GBP/USD: bulls eye key resistance through 1.2480/90

Ross J Burland FXStreet

Currently, GBP/USD is trading at 1.2466, up 0.09% on the day, having posted a daily high at 1.2477 and low at 1.2384.

GBP/USD has recovered from below the 1.24 handle and early Asian lows as the greenback falls away in the US session today. From the US docket, Durable Goods Orders came in above estimates 1.8% in January while Core orders have unexpectedly contracted. Pending Home Sales were dropping 2.8% for January vs. a 0.8% gain consensus and the Dallas Fed Manufacturing Business Index climbed to 24.5.

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GBP/USD levels

Although there has been some weakness in the pound, analysts at Commerzbank argued that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure and trigger losses to the 1.1988/80 recent low. "Immediate support is the 1.2347 February low." However, analysts at Scotiabank are bearish on a break below 1.2405, "Holding the range gives the GBP a neutral feel but broader risks are tilted to the downside, we think; a daily close under 1.2405 (40-day MA) may be enough to push the pound back towards the early Jan low around 1.1995/00." To the upside, 1.2480 and the 50/200 smoothed smas align guarding 21st Feb highs at 1.2507 and 24th Feb high at 1.2569.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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