GBP/USD advances to 1.5400 resistance

<p>GBP/USD (daily chart shown below) has advanced to key resistance around the 1.5400 level. This rise follows a tentative breakout above both a key downtrend […]</p>

GBP/USD (daily chart shown below) has advanced to key resistance around the 1.5400 level. This rise follows a tentative breakout above both a key downtrend resistance line extending back to last year’s 1.7190 high, as well as the 50-day moving average.

Currently, GBP/USD is in a pullback/rebound within a seven-month downtrend that has seen the currency pair drop by 13% in half a year, from the noted 1.7190 high in July down to the recent 1.4950 low in late January.

BGP/USD daily chart

 

After having hit that 1.4950 low three weeks ago, slightly below key psychological support at 1.5000, price action has risen sharply in a significant rebound up to the current 1.5400 resistance area.

Despite this rebound, bearish pressure within the entrenched downtrend continues to weigh on GBP/USD, potentially limiting its near-future upside.

A turn back to the downside at or near the current resistance should begin to target 1.5250 and 1.5000 once again. In the event of a further advance on the current rebound, major resistance above 1.5400 resides around the 1.5600 level.

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