Forex Technical Update
Previous: GBP/USD Short-term Pivots (12/18)
The GBP/USD broke above a recent consolidation resistance and 200 SMA at 1.5555, pushing the market up until it found resistance at 1.57. Note the RSI reading pop up above not only 60 to reflect loss of bearish momentum, but also above 70 to show bullish momentum. Now for the throwback, this 1.5550-1.5555 pivot area is key. It is not only reinforced by the 200 hour SMA, it is also at 50% retracement.
The 4H chart shows that the 1.57 resistance was also the 200 4H SMA. If we stay above 1.5555, the market should attempt a push above 1.57 toward first the 1.5765 range resistance. There we will reassess the market. A break above can signal a bullish market toward 1.61.
A break below 1.5550 however opens up the 1.5420 low. Then there is a key support zone between 1.53-1.54.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources