GBP/USD additional gains possible above 1.5420 – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, gives the technical outlook for GBP/USD, with the pair expected to gain further above 1.5420 levels.

Key Quotes

“The GBP/USD pair broke below a daily ascendant trend line coming from Feb 12 low at 1.5208, earlier in the day, falling as low as 1.5384 on the back of broad dollar strength. But the pair bounced sharply after the release of the UK Markit Manufacturing PMI, up 54.1, the fastest growth in seven month.”

“The GBP/USD pair advanced up to 1.5420, completing a pullback to the mentioned trend line, but holding below it.”

“Technically and despite holding above 1.5400, the 4 hours hart shows that the upside remains limited, as the 20 SMA heads lower around 1.5470, whilst the indicators hold well below their midlines, albeit now turning north.”

“A steady advance above the trend line, may lead to a test of the mentioned 1.5470 price zone, whilst additional advances above this last should see the rally extending up to 1.5510.”

“A retracement below 1.5380 on the other hand, will expose the pair to a quick slide towards 1.5330, February 23 daily low.”