GBP/USD 1.4204

GBP/USD Open 1.4208 High 1.4570 Low 1.4151 Close 1.4347

Last week the Pound/Dollar failed to develop growth, being limited by the 1.4900 key resistance, after which sharply decreased. On the weekly chart a divergence is formed, which carries the risk of correctional growth the Cable, in meanwhile, however, decreasing pressure is maintained while the British currency remains under 1.4900. On the daily chart the currency pair prevailed the decreasing trend line, the dropping speed decreased and the pair consolidated. Today the market opened at 1.4208, which means a gap of almost 200 pips downwards. The 49.8% Fibonacci correction on our 4 hour chart showed that after the failed break of the level 1.4590, quotes wend down and are now 38.4% at 1.4170 and should test the 23.4% level at 1.4035. Strengthening above 1.4500 may provoke a rise of the Pound. CCI almost went down on the 100 line on the 4 hour chart, assuming potential decreasing pressure.

Technical resistance levels: 1.4550 1.4665 1.4800

Technical support levels: 1.4235 1.4150 1.4000

Trading range: 1.4190 - 1.4265

Trend: Upward

Buy at 1.4204 SL 1.4174 TP 1.4254