Technical Analysis for GBP
The pair opened the trading session on a bullish gap. Stability above 1.5550 weakens the downside move without cancelling it, as trading below 1.5645 is still negative and we will count this week on that. We will wait for the pair to trade again below 1.5645 represented in 78.6% correction to better favor the downside move.
The trading range for today is among the key support at 1.5280 and key resistance at 1.5750.
The general trend over short term basis is to the upside as far as areas of 1.5100 remains intact targeting 1.6010
Support: 1.5550, 1.5535, 1.5500, 1.5475, 1.5440
Resistance: 1.5605, 1.5645, 1.5685, 1.5715, 1.5750
Recommendation Based on the charts and explanations above, our opinion is selling the pair with four-hour closing below 1.5550 targeting 1.5500, 1.5475 then 1.5390 and stop-loss with four-hour closing above 1.5645 might be appropriate In case of stop-loss, buying the pair above 1.5645 targeting 1.5685 and 1.5715 then 1.5750 and stop-loss with four-hour closing below 1.5605 might be appropriate this week