I highlighted GBPUSD on Tuesday after the pair had broken above key resistance at 1.5355. The following day the pair rallied almost 200 pips from the low.
In that commentary I also mentioned that 1.55 should prove to be the next resistance level to keep an eye on. Sure enough the pair found selling pressure at this level during Wednesday’s session but managed to close the day above it.
As we all know, former resistance becomes new support and the 1.55 handle has so far proven that it doesn’t intend to be an exception to the rule.
From here we can watch for an additional retest of 1.55 as a potential buying opportunity. However it’s important to keep in mind that the February high at 1.5550 is likely to attract sellers. Therefore more conservative traders can wait for a break above this area before considering a long position.
Summary: Opportunity to buy a retest of a retest of 1.55 as new support or wait for a break above 1.5550 for a more conservative approach. Key resistance comes in at 1.5680 and the May high of 1.5814.
