GBP/USD Survey according to the Linear Regression Channels over the past two weeks:
- After failure to trade below 1.5800 yesterday, GBP/USD pair is now testing 1.5925 which is corresponding to the upper limit of the bullish blue channel.
- GBP/USD respected the upper limit of both channels depicted on the chart which showed bearish presence pushing the pair down to 1.5802. However, Price came back quickly to break this channel with quite strong bullish 4H candlestick.
- GBP/USD is now testing the high for this month at 1.5927. Moreover, it has a strong resistance area at 1.5940-1.5960.
- Broken limit of the violet channel at 1.5850 is now acting as support level for the pair.
4H closure above 1.5960 allows the pair to reach 1.6050.
The 1H chart of GBP/USD shows that the pair has an important support level at 1.5900 which is the lower limit of the violet bullish channel, the intermediate line of the Yellow one and the upper limit of the transverse blue channel.
This price level 1.5900 is significant as Bullish Price Action towards it pushes the pair to the upside reaching 1.5950 initially.
Break of this level will allow the pair to reach 1.5850 which is corresponding to the lower limit of the Yellow bullish channel which constitutes an important support for the pair today.
Today we should be cautious as channels are quite wide indicating a possible strong movement whatever the direction is.
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