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13 May 2015
GBP/USD might see a correction towards 1.56 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, notes technicals suggest that GBP/USD might see a corrective move lower towards 1.56 levels, while above 1.5709 will negate this view.
Key Quotes
“At present, the pair is trading above 1.5661 (its 61.8% Fib expansion of 1.4564-1.5487-1.5088). The next major hurdle is seen at 1.5797 (76.4% Fib expansion). Prior to that, numerous resistance is seen in the zone of 1.5725-1.5750.”
“On the hourly chart, a bearish RSI divergence has been confirmed, which opens doors for a corrective move to 1.56 (hourly 50-MA). A break below the same could result in further losses towards 1.5550 levels.”
“However, a break above 1.5709 would mean failure of bearish RSI divergence on the hourly, and result in a rally to 1.5797-1.58 levels.”
Key Quotes
“At present, the pair is trading above 1.5661 (its 61.8% Fib expansion of 1.4564-1.5487-1.5088). The next major hurdle is seen at 1.5797 (76.4% Fib expansion). Prior to that, numerous resistance is seen in the zone of 1.5725-1.5750.”
“On the hourly chart, a bearish RSI divergence has been confirmed, which opens doors for a corrective move to 1.56 (hourly 50-MA). A break below the same could result in further losses towards 1.5550 levels.”
“However, a break above 1.5709 would mean failure of bearish RSI divergence on the hourly, and result in a rally to 1.5797-1.58 levels.”