GBP/USD – Thursday Morning Technical Levels
We have covered the support and resistance levels in three forex pairs this week, if you remember, but we have forgotten GBP/USD. The British Pound has been battered since the Brexit referendum, losing more than 30 cents against most major currencies at some point. But since the UK High Court ruled against the UK government triggering the Article 50, the GBP has enjoyed a period of positivity.
The market sentiment has shifted for the near term so while the rest of the major forex pairs were declining in favour of the USD, the GBP has been showing resilience. It has moved to mid-20s from the low 20s in the last few weeks, which has brought some old levels back into play. So let's have a quick look at them.
The GBP/USD support and resistance levels are pretty visible, aren´t they?
The first support level is provided by the 20 moving average (20 SMA), which stands around 1.2400-10 on the daily GBP/USD chart. Another strong support level is 1.2300-10, which was the swing low last week and earlier this week. However, the nearby main support level is today´s swing low at 1.2350-60; it came at the same level as the low from two weeks ago, so that´s the second level of defense for the GBP/USD buyers and a quite strong support level.
Looking at the top side, we can see the 100 SMA in red on the H4 forex chart standing at 1.2460, which makes this level the first resistance. Moving higher, this week´s high at 1.25 (+/- 10 pips) provided solid resistance during the second part of last week so that´s the second resistance level, followed by higher up 1.2550 where the second black line stands and then 1.2670.
So, these are the closest support and resistance levels for GBP/USD, guys. I´ll be looking at them today to define risk if I decide to trade this forex pair. But, with the US on bank holiday today, the closest levels are the ones I´m looking at.
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