Monday, August 24, 2015

British Pound Drops to Support

Despite ending at the upper part of the range gbp/usd dropped to support during early European session. One can clearly see a reversal pattern forming on 15 minute chart 02:45 to 05:15 GMT, and then price collapsing. The drop might be over as the pair is rallying up from support. We need to wait an hour or two to get confirmation whether the drop is really over or will resume itself. 

There are no major Forex news releases scheduled for today, so trading will probably be more technical than fundamentally driven. 

We have two resistance levels ahead if price starts pushing up. The first one is Asian session high at 1.5697, the second one is last Thursday high at: 1.5723.

Support starts at 1.5630. I expect the level to hold, but if it doesn’t the next level will come at 1.5605, which is the low of 20th of August. 

Current rate of the pair is 1.5610. I will only start buying if I see a reversal pattern around 1.5630 forming.
Another pair, which is a catalyst to this one, is eur/gbp/ Euro is rising against Pound and when it starts dropping we might see more Pound strength in Pound/US dollar pair. 

Support and resistance levels

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