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Devata Tseng

GBPUSD Retraces After Testing Near Term Major Resistance

The UK Prime Minister Theresa May made a speech in the CBI conference yesterday, expressing that businesses don’t want a sudden and overnight transformation in ¬trading conditions, and she wants to avoid ‘cliff edge’ after the Brexit. She also suggested that the corporation tax can be cut to a record low.

The statement pushed Sterling up, GBPUSD rallied substantially of 1.62% yesterday, from the intra-day low of 1.2311, to the intra-day high of 1.2510.

Yet the level at 1.2500 is the near term major resistance, the selling and profit-taking pressure is heavy above the level, be aware of a retracement.

The 4 hourly Stochastic Oscillator is crossing over from above, suggesting a pullback.

The resistance level is at 1.2450, followed by 1.2470 and 1.2500.
The support line is at 1.2420, followed by 1.2400 and 1.2380.

gbpusd-h4-

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