GBP/USD Closing In Towards a Major Resistance Area
Titan FX | Nov 30, 2015 09:21PM ET
Key Highlights
· British Pound tested the 1.5000 support area against the US dollar and bounced back sharply.
· The GBP/USD pair recovered well, and currently trading near a major resistance area of 1.5100.
· In China, the NBS Manufacturing Purchasing Managers Index (PMI) released by the China Federation of Logistics and Purchasing (CFLP) posted a decline from the last reading of 49.8 to 49.6 in November 2015.
· Chinese official non-manufacturing PMI increased from 53.1 to 53.6 in November 2015.
GBP/USD Technical Analysis
The British Pound recovered well after declining close to the 1.5000 area. The GBP/USD pair corrected more than 80 pips higher and now facing a monster barrier in the form of a bearish trend lines confluence area. The 100 hourly simple moving average is also positioned around the stated confluence area to act as a resistance.
Let us see whether the pair can break the 1.5080-1.5100 resistance area or not moving ahead. A break above it could ignite a run towards the 1.5150 level or may be towards the 200 hourly MA.
On the downside, an initial support can be seen around the 1.5040 area, followed by the all-important 1.5000 level. The hourly RSI is above the 50 level, which is a positive sign.
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