GBPUSD: Halts Weakness, Risk Turns Higher On Correction!
With GBPUSD closing higher above the 1.2477 levels to reverse its previous week losses, further upside offensive is likely in the days ahead. Further out, resistance comes at the 1.2500 levels. A cap may occur here and turn it lower but if that fails, more upside will develop towards the 1.2560 levels with a break targeting the 1.2600 levels. Above here if seen will turn outlook bullish – medium term – and aim the 1.2650/1.2700 levels…
Conversely, support stands at the 1.2477 levels (broken resistance turned support) with a break below here targeting the 1.2425/1.2410 levels. Below that level will terminate recent recovery and turns the focus back to the downside to the 1.2380/1.2340 levels and pave the way for further losses…
Conclusion: The GBPUSD continues to face recovery threats above 1.2410 levels in the short term on correction.
- Expected range 1.2400/1.2600
- The UK will release its monthly employment report today at 08:30 GMT in conjunction with BoE Gov Carney Speaks.