GBPUSD Bounces off Lows, Early Attempt to Recover Past the Level at 1.2300

GBPUSD Bounces off Lows, Early Attempt to Recover Past the Level at 1.2300

GBPUSD Price Analysis – March 16

With the Fed’s surprise activity reminiscent of the US dollar bears, GBPUSD bounces off lows in an early attempt to rebound past the level of 1.2300 to 1.2412 and higher than 0.50 percent on Monday as it heads into open European and American session. During the early Asian session, the US Federal Reserve reported a surprise rate cut to 0.25 percent, in addition to $700 billion in Quantitative Easing (QE).

Key Levels
Resistance Levels: 1.3280, 1.2900, 1.2582
Support Levels: 1.2195, 1.2013, 1.1958

GBPUSD Long term Trend: Bearish

In the larger structure, the present scenario suggests that price actions from 1.1958 (low) level are merely a trend of consolidation, with the third leg being completed at 1.3514 level. Rejection of the level at 1.3172 by upside horizontal zone also solidifies long-term bearishness.

Focus is back on the low level of 1.1958 where there could be a definitive break with a larger downward trend of 2.1161 (high). So long so 1.3514 resistance level holds, this may remain the preferred scenario.

GBPUSD Short term Trend: Bearish

At the moment the intraday bias in GBPUSD remains on the downside while retesting a low level of 1.1958 can be seen as a further decline.

On the upside, past the level of 1.2490 minor resistance may first alter neutral intraday bias while further decline may be expected as long as 1.2725 support level turned resistance holds.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.