GBPUSD Pullsback on Channel Test
Prepared by Christopher Vecchio, Currency Analyst
Wednesday I wrote “Resistance has broken in the short-term channel at 1.5770, opening up room for a run towards 1.5880/1.5900.” Indeed, this was the case, with failure coming at said level yesterday; a pullback has materialized today as well. Our key levels for the near-term are 1.5880/1.5900 to the upside and 1.5770 to the downside; we are also becoming overextended on shorter-term charts, suggesting that another failure at 1.5900 could lead to profit taking before further bullish price action. A daily close below 1.5770 should lead to a drop into 1.5700/20. Beyond that, support comes in at 1.5635/40 (last week’s low), and 1.5625 (ascending trendline support off of August 6 and August 10 lows).
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