GBP/USD - All depends on day end closing

13 May 2016

Resistance – 1.4387, 1.4413, 1.4441

Support -1.4353, 1.4330, 1.43

• Cable’s bearish break from the rising trend line formation on the hourly chart has opened doors for further losses.
  

• However, bears should watch out for support at 1.4354 (daily 100-SMA). A rebound from 1.4354 could see minor correction to 1.4387 and possibly to 1.44+ levels.
  

• Continued selling puts GBP at risk of a drop to 1.4330.
  

• It all depends on the day end closing..below 1.4387 means rising trend line breached on day end closing basis and that would mean the sell-off from the high of 1.4770 has resumed.
  

• Daily closing above 1.4387 keeps hopes alive of a rebound to 1.4441 on Monday. Moreover, bulls need a day end closing above 1.45 handle.