GBP/USD remains a buy on dips – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Matias Salord, notes that GBP/USD technicals favour the upside, suggesting to buy dips for the pair as a break above the resistance at1.5550-1.5560 might pave way for 1.5600 levels.

Key Quotes

“The short term trend and momentum still favors the upside, with price holding above key moving averages, but to open the doors for further gains price needs to break 1.5550 - 1.5560 that is the key resistance for the coming sessions. Above here it could accelerate and it is likely to move toward 1.5600 (on top of 2015 highs); above the next strong resistance is seen at 1.5680/85.”

“In the hourly chart the pair is moving to the downside, with the pair correcting after rising more than 200 pips from weekly lows.”

“The correction could continue but it could be seen as an opportunity to buy cable again.”

“The immediate support level that should cap the decline lies at 1.5470 and below at 1.5420. Only a consolidation below 1.5370 could change the bullish outlook.”