May the 20th, 2021
The GBP had a fairly decent correction after failing to crack 1.4220, It broke support at 1.4140 on its way down to test 1.4100.
However, we have found some good support at 1,4100 and would expect more buyers on dips below this level to 1.4060.
Some resistance will be found at 1.4150, with stronger resistance at 1.4180. But a break here and we will be on our way to test 1.4210/20 again.
Resistance in the 154.90 to 155 area put a lid on the overbought GBP.
The corrective move down from the highs took the GBP back to 153.60 from where enthusiastic buyers took control and pushed the GBP back above 154.00
Resistance is back at 154.30 and if broken i think there is a good chance to trade back up to the previous highs of 154.80/90.
Dip buyers are waiting below 153.80 and more support will be found at 153.30.
With Strong Resistance at 1.9720 holding the GBP back, The Kiwi Dollar took full advantage of the Pounds corrective move to break support at 1.9670. However buyers at 1.9630 has stopped the Pound from slipping further.
Sellers will be waiting at 1.9680 to keep some pressure on the GBP, and a break of 1.9630 will open a deeper drop to 1.9570.
Is trading in the same pattern as yesterday just above or below 1.2740. You might as well refer to yesterdays analysis. As it is a bit boring writing the same thing all the time.
Analysis and Charts provided by Eight Dragons Capital
If you want to know more about trading Forex or Gold use the contact form on the website or contact us at email@example.com