FX.co ★ Technical analysis of GBP/USD for May 28, 2015

Overview:

• Today, thThe GBP/USD pair moved from 1.5395 to 1.5319; the market opened at 1.5325. The downtrend represents the double bottom of the channel emerging at the level of 1.5325. It is equally important that the RSI has still been negative in the daily time frame. So, it calls for a new downward movement. Therefore, the price movement will be moved between the levels of 1.5330 and 1.5189 (50% Fibonacci retracement levels in H4 chart). Moreover, the pair has already formed major resistance at the level of 1.5395. The price was set below this level a day ago. The market will indicate a bearish opportunity at the level of 1.5330 with the first target at 1.5275. Thus, if it breaks the support at 1.5275, a breakout above this level will take place with the second target at 1.5189. On the other hand, the best location for placing a stop loss is seen above the last bullish wave 1.5395.

Technical levels:.

• Projected high: 1.5395.
• Strong resistance (sell limit): 1.5388.
• Current Pivot: 1.5325.
• Strong support (buy limit): 1.5266.
• Projected low: 1.5189.