The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
GBP/USD pulls back to key support level
The GBP/USD bounce seen earlier this week, from the 1 June low at $1.517, closed above the crucial $1.533 level which represents the July low and double-top neckline. Early signs point towards possible support being respected around this level, and there is a possibility that the price could use this as a base to push higher once more.
Coming off the back of a bearish trend which has seen new lows and lower highs, I would want to see a move above $1.5416 for a new high or a new higher low above $1.517 to gain confidence that we are moving into a more bullish phase. However, for now I am watching for a possible bounce from $1.533, where a close below that level on intraday charts could point to another strong move lower today.