GbpUsd Daily Technical View, August 1st
Cable tested the 2.0365 resistance and failed to break above it, after that it gave back around 150 points in a sharp move towards the 2.0200 support line. If the south move is going to continue we should see a break bellow the 2.0200 support either today or tomorrow, if that happens the next support is April 18th high of 2.0133 before the 2.0000 round number.
If the 2.0200 proves to be to strong and the pair doesn't get bellow it we might see the pair being range bound between 2.0200 and 2.0365; the short term bias is to the south but price needs to break the above mentioned support in order for us to be more relaxed about opening new trades. Of course one has to take into consideration that a new bounce from the 2.0200 level might push the pair to retest the 2.0365 resistance and even have enough energy to get above it, with that in mind closest resistance is the 2.0400 followed by the 2.0500, both of them are intermediary levels before the pair gets close enough to July 24th record high at 2.0650.
GbpUsd Daily Technical View, July 31st
Cable tested the 2.0200 support line when it opened Sunday night but it lacked the strength to go bellow it so it bounced back towards the 2.0365 resistance line. We did mention in out previous commentary that the pair might stop its downfall at the 2.0200 and either start a consolidation period or bounce back up, so far either scenarios could happen, in order that yesterday's move to be part of that bounce move we still need to make higher highs and get above 2.0365, if that won't happen the pair might slip lower down and retest the 2.0200 support before a new move starts.
A failure to hold on to yesterday's gains will start to put additional pressure on cable and we might see a break of the 2.0200 support level if that happens the next support is April 18th high of 2.0133 before the 2.0000 round number.
If on the other hand cable managed to get closer to 2.0365 and even break above it we have to pay attention to all those support levels the pair broke last week as they have turned now into resistance levels, closest one is the 2.0400 followed by the 2.0500, both of them are intermediary levels before the pair gets close enough to July 24th record high at 2.0650.
Resistance Levels
2.0700- round number
2.0650 – July 24th High
2.0360 – July 11high
Support Levels
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
