The GBPUSD pair has managed to hold above its support at 1.34824 over the last few trading sessions and has formed a trading range up to 1.35926. The sequence of lower highs is still intact and for a reversal of the down trend started in mid-April at 1.43760 to take place, the price needs to set a high above yesterday’s high at 1.35926. At this point, a look towards the resistance level of 1.36127 as a possible target area becomes appropriate. If the price was to rally from current levels, this would create a double bottom with a target of 1.37000. However, resistance at the falling trend line at 1.36428 and the 1.36560 level is strengthened by the 200-Hour MA at 1.36452.
Should a retest of this area fail and resistance hold, a move back to test the support of the double bottom would be logical. This would mean a break back under the 100-Hour MA, currently at 1.35656, which was used as resistance to form yesterday’s high. Support below comes in at 1.34300, followed by the 134000 level. Further support can be found at 1.33000.
US 30 Index
The US 30 Index reacted to the US termination of their involvement in the Iran Deal with an initial whipsaw price action, as traders positioned their portfolios. The 4-Hour moving averages were all tested and the resultant move this morning is a break higher above trend line resistance at 24350.00. This leaves a strong support zone down to 24200.00, which was yesterday’s low. A break out higher needs to clear 24500.00, at which point the April high of 24860.00 becomes a target. Above this level, 25000.00 is followed by 25500.00.
A break lower from a failed rally becomes bearish under 24200.00, with support at 24000.00. The falling black trend line at 23880.00 is approaching a support zone starting at 23820.00 and extending down to 23775.00. From there, support is found at 23530.00 and the rising blue trend line connecting the lows of 2018 at 23478.00, with 23250.00 as support in extension.