GBPUSD has charged higher at the start of this week, negating its current downtrend channel and shifting our bias to mildly bullish. However, while the bullish move has been aggressive, the key question is its sustainability, as momentum has stalled. The cable remains well short of the 1-month uptrend channel territory and unable to test the 1.5885 resistance and therefore we will only marginally bullish.

On the topside there is plenty of resistance cluttering the path to recovery; first resistance is now 1.5878 (double touch on 20th Feb), 1.5885 (9th Feb high), 1.5932 (15th Nov high), and 1.6000 psychological level.

Should the bears resume their sell-off in the coming sessions, watch for supports to come into play at 1.5770 ((14th Feb high), 1.5644 (27th Jan low), 1.5533 (24th Jan low), and 1.5517 (23rd Jan low).

MT4 - GBPUSD has charged higher at the start of this week, negating its current downtrend channel and shifting our bias to mildly bullish. However, while the bullish move has been aggressive, the key question is its sustainability, as momentum has stalled. The cable remains well short of the 1-month uptrend channel territory and unable to test the 1.5885 resistance and therefore we will only marginally bullish.

On the topside there is plenty of resistance cluttering the path to recovery; first resistance is now 1.5878 (double touch on 20th Feb), 1.5885 (9th Feb high), 1.5932 (15th Nov high), and 1.6000 psychological level.

Should the bears resume their sell-off in the coming sessions, watch for supports to come into play at 1.5770 ((14th Feb high), 1.5644 (27th Jan low), 1.5533 (24th Jan low), and 1.5517 (23rd Jan low).

MT4 platform and analysis courtesy of Swissquote bank.

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