British Pound Former Resistance acts as Support
Prepared by Jamie Saettele, CMT
Like the EURUSD, the GBPUSD has spent the last 3 days trading within the first day of the month’s rang. The drop from the 2/1 high to the 2/6 low (145 pips) is the largest decline since the GBPUSD rally that began on 1/13. However, the structure of the decline is corrective and suggests that price will exceed 15882. The 200 day average at 15946 and 50% retracement of the decline from the 2011 high at 15989 are levels of interest on the upside. 15785 is short term support and a drop below 15706 would negate the constructive bias.
Bottom Line – flat
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