Market Research

GBPUSD Facing Bearish Pressure Below Physiological Level

22-May-2017 @ 03:28 PM

Gbpusd is facing some bearish pressure below the physiological level at 1.3000. It opened with a gap on the downside. It tried to recover the gap but still not getting enough bullish momentum. If this pair stays below 1.3000 level, then bearish rally can be expected. 

Trump’s woes have hurt the dollar, but the US economy remains solid. There are growing concerns about the British economy, with the BoE warning that living standards will drop as a result of Brexit, Still, the pound is back above the symbolic 1.30 level, and any hints of an interest rate hike from the BoE would likely boost the pound.


Technical lines from top to bottom

We begin with resistance at 1.3444.

1.3347 has held in resistance since September 2016.

1.3247 is next.

1.3112 marked a low point in June 2016 as the pound crashed after the Brexit vote.

1.3020 has switched to a support level. It is a weak line.

1.2902 is next.

1.2775 is providing support.

1.2548 is the final support level for now.

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