GBP/USD: daily update
GBP/USD rose by more than 140 pips yesterday and closed above resistance line connecting January and June highs. Note though, the pair’s oversold in the short term. There’s a divergence on the H4 chart. On the weekly chart there are 3 obstacles ahead: 55-week MA ($1.5644), 100-week MA ($1.5687) and 200-week MA ($1.5753).
Sterling may retest $1.5575. Weak data from US today at 12:30 GMT will make us favor buying from this point for $1.5670 (upside of the channel). Above this resistance the level of $1.5750 will get in sight. This will be a harder obstacle for the bulls.
A slide below $1.5575 on good US figures may lead pound to $1.5530 and below this point – to $1.5430, $1.5400 and even $1.5300.
Chart. H4 GBP/USD