GBP/USD: Break above 1.5420 anticipates more gains

by Admin

Pound leads market this European morning, after the release of the first quarter GDP: the kingdom seems to have avoided a triple read recession, with an improved reading of 0.3%. GBP/USD soared pass 1.5420, which stands for the 38.2% retracement of the 1.6381/1.4830 fall, and reached 1.5451 so far today. Intraday charts show price has already completed a pullback to the level that offers now short term support: as long as above, buyers will be in control. A break above mentioned daily high should lead to an advance towards 1.5490, next static resistance level, ahead of 1.5530 price zone.

Below 1.5420, the retracement may extend down to 1.5370 and if below this last, the upward momentum will be lost, with scope then for a test of 1.5310/30 area.

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