GBP/USD Sells Off To First Support At 1.4365
Jason Sen | Mar 31, 2016 06:17AM ET
GBP/USD failure to beat important trend line resistance at 1.4470/80 is more negative for today. The pair has sold off to first support at 1.4365/55. This is important today and key to direction. A break below 1.4345 signals further losses to 1.4310/00, perhaps as far as strong support at 1.4260/55. Try longs with stops below 1.4225.
Holding first support at 1.4365/55 allows a recovery to 1.4400/05, but above here meets important trend line resistance at 1.4470/80. Of course, this is the main challenge for bulls this week. A break and CLOSE above is required to signal the completion of the bullish inverse head and shoulders pattern. A break above March highs at 1.4514 is more positive again and helps to confirm a move towards resistance at 1.4575/80. If we can continue higher, look for more important resistance at 1.4625/30.
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