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GBP/USD likely to test 1.5720 levels – FXStreet

FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, the GBP/USD pair is likely to test 1.5720 levels today as the short term technicals point towards a bullish move, with the pair currently trading around 1.5688 levels.

Key Quotes

“The GBP/USD pair finished higher on Tuesday at 1.5667, after failing to sustain gains above the 10-DMA located at 1.5680 levels. The gains are being extended today as the pair trades at 1.5688 levels; well above the 5-DMA and 10-DMA located at 1.5649 and 1.5669 levels.”

“Meanwhile, on the hourly chart, the pair is trading well above the inverted head and shoulder neckline located at 1.5662 levels. Plus, the pair is also trading above the rising trend line support located at 1.5685 levels.”

“The hourly RSI is also bullish at 60.00 levels. Thus, the pair is likely to test 1.5720 levels today. However, given the multiple failures around the same area, a fresh demand for Pounds can be expected once the pair breaches 1.5720 levels. In such a case, the gains could be extended to the inverted head and shoulder target of 1.5818 levels.”

“On the other hand, a break below 1.5662 is likely to bring-in the bears.”

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