GBP/USD – Re-test of Friday’s low likely

1 Tem 2016

Resistance – 1.3345 (hourly 100-MA), 1.3392 (hourly 50-MA), 1.3461

Support – 1.3286 (June 29 low), 1.3226 (last Fri’s low), 1.3119 (Mon’s low)

• Pair’s repeated failure to take out hourly 100-MA in Asia despite bullish crossover between hourly 50-MA and hourly 100-MA coupled with a failure to sustain above 5-DMA indicates the prices could be heading lower to last Friday’s low of 1.3226. Hourly RSI trading below 50.00 adds credence to the possibility of the bearish move.
  

• On the higher side, a break above hourly 50-MA would open doors for a test of trend line resistance at 1.3461 levels.
  Only a day end closing above 1.3461 today would signal continuation of the recovery from Monday’s low of 1.3119.