Pound traders may have noticed that the currency consistantly found downward sloping resistance against the Dollar (dotted yellow line) until the pair broke out of this trend on Mar. 19th. From there on the pair had lightly oscillated between our new horizontal resistance level, 1.4890, and the former downward sloping resistance line (now support). Traders may have also noticed the 1.3600 level formed a support base that propped GBPUSD on two occasions.
The currency pair could sell off from this level to the point where the exchange rate meets the downward sloping yellow support OR the solid white base support; whichever comes first. On the contrary, the pair could break above the current solid resistance level and may see the commencement of a medium-term trend reversal. Traders may want to wait for a daily candle confirmation in either direction before taking action.
Al Bawaba
