Support and Resistance Levels – GBP/USD
Skerdian Meta • 1 min read
The forex market seems pretty quiet this morning. This leaves us with some spare time to look at support and resistance levels. Let´s start with GBP/USD as it was the wildest forex pair yesterday.
After the UK inflation report yesterday, GBP/USD jumped around 150 pips. However, the 1.25 level placed a lid on that move yesterday and it did so again today, despite being broken by a few pips. Although that looks more like a fakeout, 1.2 is the first resistance level and it is a big one too for that matter.
There aren´t any visible technical indicators above, such as moving averages, since we are coming from below. Nevertheless, the resistance levels to keep in mind are 1.2550. 1.2580 and 1.26.
The support levels are a bit more visible, with the first one coming at 1.2440. That was the high on Monday and the low yesterday after the jump following the inflation report.
Below that level, we can find the 50 SMA on the H1 forex chart at 1.2420, which makes it a mild support. Below is 1.24, where we can find a number of moving averages on the H4 and daily charts, therefore, that remains a big support level for now.
Support is much more visible than resistance
Speaking of the H4 chart, from the image above, we can see the red moving average providing solid support late last week and early this week. It comes at 1.2340-50, so that will be another tough obstacle for bears to overcome.