Daily Price Action
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GBPUSD Decline Could Accelerate Sub 1.5353

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I mentioned GBPUSD in the weekend commentary, noting the break of channel support on May 22nd. Since then the pair has drifted 140 pips lower and recently broke key support on an intraday basis.

The 1.5353 level provided support for the pair during yesterday’s session, however the recent 4 hour break offers a chance to look for short opportunities as long as we trade below this key level.

With the US dollar on the rise again we could see the decline in the pound pick up pace over the coming sessions. Of course any downside potential would be negated on a close back above the 1.5353 handle.

Looking lower, the well-defined support levels offer an opportunity to pyramid into any favorable position. Just be sure to wait for a true retest of new resistance before considering an entry.

Summary: Watch for a retest of 1.5353 as new resistance. Key support comes in at 1.5195 and 1.4980.

GBPUSD key levels in focus

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1 comment
Justin Bennett says

Hi Robert,

A retest needs to confirm whether a level is likely to hold, generally in the form of bullish or bearish price action.

Cheers,

Justin

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