We sit near the lows at 1.6770 after the Carney inspired 77 pip fall and we need to take a look at our surroundings.
There’s some strong support levels coming in far below here around the 100 dama and 200 mma at 1.6618/20 but ahead of that we have a juicy level at 1.67219/25
GBP/USD daily chart 14 05 2014
The rising October 2013 uptrend is still in play and we’re close to the downside of that move. With a prior S&R level and the 55 dma here too it’s a fairly strong level which could mark the turning point, or at least temporary halt point should we see further losses.
1.6800 is going to hold mild resistance if we can get above 1.6790, and the previously strong support level at 1.6825 is likely to see resistance in also. A break of that level will encourage the bulls and we could see shorts from higher thinking about covering.
After closing my shorts from 1.6995 I fished in the middle of the conference with a long at 1.6793 as I thought there was no reason for the constant downward pressure. I didn’t take long to throw it away for a 22 pip loss when we failed to bounce and I’m now eyeing the 1.6720 level for a long.
While I’m on it, here are some updated orders close around these levels.
Offers – 1.6850, 1.6900
Bids – 1.6750 (stops), 1.6700, 1.6660, 1.6650
