GBP/USD Finds Support

Peter Adamson

On my last post about GBP/USD I pointed out how the market reversed at the 61.8% time expansion of the previous rally, right at the 61.8% price retracement. The market has rallied above key support at 1.4821 and come back to test it. This support is based on a four month double bottom in 2013 so it is significant. We can now see that the market is once again finding support at this level and has rallied from it during the first half of the London session. We would recommend buying any pull-back on the hourly chart. However, if the market trades below 1.4821, do nothing until it retests 1.4657, which is 180 degrees off the 52 week high of 1.7190.

GBP/USD Weekly Chart