Gbp/Usd Daily Technical View, July 20th
Cable formed a down bar on the daily charts, with the high and low inside the previous day's range, so a break outside of that range might indicate a more energetic move either above 2.0540 or bellow 2.0470.
A break towards the high (2.0540) will open up 2.0600 as a bull target while making new record highs. Conversely a break to the downside (2.0470) will start to put pressure on the pair and will bring into attention former resistance levels now turned into support, closest one being the 2.0370 area followed by the 2.0300 round number, if both of them fail to hold the pair above we have the 2.0200 which proved to be a tough resistance and should do the same as a support level. The daily charts are forming a bearish divergence so we need to be extra careful is assessing the situation and opening new trades.
Resistance Levels
* 2.0600- round number
* 2.0550 – 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
