GbpUsd Daily Technical View
Cable formed a red candle on the weekly charts after 6 consecutive green ones. The pair made a new record high on Tuesday at 2.0653 before sinking about 400 points in the following days. We did mention that a reversal was possible but the strength and speed of it was a surprise, in just 3 days from a record high we have gotten very close to the 2.0200 support line, the pair smashed through 2.0500 and 2.0400 support numbers and halted only at 2.0250.
A continuation of the down move will have to break under the 2.0200 support line, and if that happens the next support is April 18th high of 2.0133 before the 2.0000 round number. At this point the 2.0000 level might act as a bear target just as it did when the pair was trading bellow it and the bulls were aiming at it.
On a different note, cable might stop its south sharp fall above the 2.0200 support line and either enter into a consolidation period or even reverse back up, if that will be the case all the support levels it broke through will act as resistance. We will continue to analyze price action especially around the 2.0200 level, if it gets that low, and see if this down move has the energy to continue or we have to expect a north reversal.
Resistance Levels
2.0700- round number
2.0650 – round number
Support Levels
2.0360 – July 11high
2.0200 – Round number
2.0133 – April 18th High
2.0060/70 – April 25th High
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Analysis by Bogdan Parascanu of FX Instructor
