The GBP/USD pair broke out of its broadening wedge pattern on the 13th of March and retested the trend line in Blue on the 16th, setting up a move higher to 1.42445. This level was tested twice on Monday, with the price falling back to the 1.40675 level. The pair moved higher yesterday, helped by news that the UK Government would be in contact with the EU regarding a new solution to avoiding a hard border on the island of Ireland. Price has backed off from the highs this morning to retest support at around 1.41443.
Resistance comes in at the 1.42000 level, with the recent highs at 1.42445. The next level of resistance comes in at 1.42790, with the 1.43000 level above. The January high comes in at 1.43450. Support can be found at the 1.41000 level, which is aligned with the 50-period MA. A loss here would suggest a test on the supporting trend line at 1.40352 and the 100-period MA at the same level. If that support is broken then the recent move higher is at risk, with the 1.40000 level and the 200-period MA at 1.39720 acting as final supports ahead of the 1.39000 level and the lows at 1.37000.
GBPUSD 4-Hour Chart
The US tech index has been hit hard once again, with Monday and Tuesday’s candles creating an outside day on the back of a downtrend over the last series of the session starting on the 13th of March. An outside day like this suggests that traders have made up their minds on the direction for the coming days and it represents a continuation of the recent trend. Thursday and Friday saw strong selling and the attempt to rally on Monday has been reversed by yesterday’s candle, with a new low created today so far. The supporting trend line is located at 6418 and this is the first level bears need to get across. Further support is seen at the 200 DMA at 6322.2 and the February low at 6161.8.
Resistance is found at the 100 DMA at 6618.6 and the 50 DMA at 6766.8, with yesterday’s high at 6833.2. The 7037.1 level and the high at 7182.7 are targets for bulls to aim for should the trend reverse.
NASDAQ Daily Chart