After a three-day weekend, traders will return to the markets where there is little scheduled on the economic calendar. The pair GBP/USD has been in an upward trend from 1.6465 levels. The pair is facing strong resistance at 1.6823 levels (February 17, high). The pair has been trying to cross the R1 level from last weeks. It tried 4 times, but all the attempts were unsuccessful. Only one time it crossed the 1.6823 and made high at 1.6842 but not close above the R1 level. In yesterday trading session as well it got restricted at 1.6823 levels. In the daily chart, RSI is almost in overbought zone. If a day closes above the 1.6823, the pair will fly up to 1.6906 levels. This weeks key support level exists at 1.666. On the downside, 1.666, 1.6554 and 1.6465 are the key support levels. On the upside, if a day closes above the 1.6823, the pair will shoot up to 1.6841, 1.6875,1.6906, and 1.7043 is an open target.
In the daily and weekly charts, the RSI is indicating a limited upside and the trading pattern for the new month May is prepared for a correction. This is purely my personal opinion. Traders (risky) who is waiting for short can take positions with sl 1.6823 on closing basis or can enter shorts on higher levels at 1.69. The pair will produce more noise than a voice in the short term. Once the pair completes its correction, we expect new higher levels in this pair until it trades above 1.6350.
Intraday-
The pair having support at 1.6783 levels; until the pair holds this level, it will shoot up to 1.6819 levels. Currently it is trading in a range between 1.6819-1.6783. The RSI in the H4 chart doesn't favor to buyers. If any up move takes place, traders can enter shorts in every rise. Selling on rallies is the best strategy for near and short term basis. Safe traders can go short below 1.6783 targets 1.6774 and 1.6720
S1 1.6783 R1 1.6819
S2 1.6772 R2 1.6841
S3 1.6720 R3 1.6875
