GBP/USD Wastes No Time Testing Resistance

 

 

The GBPUSD has seen some profit taking buying in early NY trade as the selling found support at the 61.8% retracement of the move up from the March 1st low to the high on March 8th.  That level came in at 1.4939 (see hourly chart below). 

The pair is now testing the intraday resistance against the 100 bar MA on the 5 minute chart (at 1.4983) and a double bottom level from earlier trading (at 1.4976).  Additional upside resistance comes in at 1.4991 trendline from the most recent highs.

Looking at the hourly chart the 1.4988 level is also a level to be aware of this morning.  This level was the low from last Friday and the 50% retracement of the move up from the March 1st low to the March 8th high (see chart below).  

The market should find sellers against these levels. A move above would likely lead to further short covering with 1.5008 (200 bar MA on the 5 minute chart) and 1.5037, the next upside targets. 

 

 

On the downside a break ov the 1.4939 level will be needed to solicit additional selling pressure with 1.4854  a key level.

 

 

The pair has been hit from a combination of credit rating warnings for UK sovereign debt from Fitch and from UK bank related ratings from Moody's.   Also the Trade Balance can in at the largest deficit in 17 months. This also weighed on the GBPUSD.

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