Like many of the other majors, GBPUSD has been fairly indecisive since the start of last week. However that may be about to change given yesterday’s price action.
Despite trying on several occasions to break free, the pair has been capped below the 1.5355 level since falling below it on May 28th. But all that changed during yesterday’s session when the pair managed a daily close above former resistance.
From here we could see a push higher to the next key resistance level of 1.5500. This area is represented by the April highs as well as the closing price for the week of May 18th.
If the pair is able to breach 1.5500, the next area that will likely attract sellers is 1.5680, a level that was carved out by the highs on May 21st and 22nd. This level can also be seen acting as a pivot of sorts between mid November and mid December of last year.
Summary: Opportunity to trade yesterday’s bullish pin bar on a retest of 1.5355 as new support. Key resistance comes in at 1.5500, 1.5680 and 1.5814.
