The FX Specialist view – When we last looked at GBP/USD the chart had tested a long term 76.4% retracement level, where the initial reaction had been positive. But the required bullish signals from the Daily chart were not in place – and they are now.
- WEEKLY CHART:
The 76.4% pullback has provided good support so far, and the chart structure now suggests that, s/term dips notwithstanding, higher values can be seen. - DAILY CHART:
The earlier breach of the 23.6% recovery level followed by recent violations of the bear channel top projection and 1.5125 area have provided a bull signal for us, in the FX Specialist Guide.
S/term dips are now more likely to be temporary ahead of a further bull leg.
Note first support coming from the prior 1.4780 support/resistance. A deeper slip would turn focus on the 1.4500 area.
On the upside, beyond the nearby 38.2% level just above 1.5300, note the stronger resistance at 1.5635/ 1.5705, 50% (a good level in GBP sometimes) and 13-Oct low.
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