GBP/USD is expected to trade with a bullish bias. The pair has entered a consolidation phase after striking 146.40 on the upside. Currently it has located support from the ascending 20-period moving average, which is far above the 50-period one. Meanwhile, the intraday relative strength index keeps riding on a rising trend line, indicating continued upward momentum for the pair.
Above 145.40, the pair should rise further to 146.40, a key overlapping level of resistance and support seen on Dec 9. Key support is located at 145.40.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 146.40 and the second one at 147. In the alternative scenario, short positions are recommended with the first target at 144.65 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 144.15. The pivot point lies at 145.40.
Resistance levels: 146.40, 147.00, 147.85
Support levels: 144.65, 144.15, 143.30
The material has been provided by InstaForex Company - www.instaforex.com