Technical analysis of GBP/USD for April 16, 2018

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Overview:

The GBP/USD pair continues to trade upwards from the level of 1.4225 (the daily pivot point). Last week, the pair rose from the level of 1.4170 (the level of 1.4170 is coincided with the major support today) to the top around 1.4296. Today, the first resistance level is seen at 1.4364 followed by 1.4426, while daily support 1 is seen at 1.4170. According to the previous events, the GBP/USD pair is still moving between the levels of 1.4225 and 1.4364; for that we expect a range of 139 pips (1.4364 - 1.4225) at least in coming days. If the GBP/USD pair fails to break through the resistance level of 1.4364, the market will decline further to 1.4170. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards 1.4170 with a view to test the daily support. On the contrary, if a breakout takes place at the resistance level of 1.4364, then the trend will continue to move towards the next target of 1.4426.

The material has been provided by InstaForex Company - www.instaforex.com