Today traders focus on the Scottish referendum, effecting demand pressure on the Pound. GBP/USD has been facing strong resistance at the descending trend line. In the daily charts, the pair was rejected at 20Dsma during previous days and closed below 1.6280 representing undertone of bearishness. The cable has support at 1.6230, below this, 1.62, 1.6180 and 1.6160 levels. We can see another fall below 1.6160 for a downside target at 1.6052 and 1.60. A weekly close below 1.60 underpins the pair to fall another 200-300 pips in the ST. For the near term, a daily close above 1.6385 favors selling on an up move.
Resistance 1.6385 1.6440 1.6585
Support 1.62 1.6050 1.60
A weekly close below 1.60 ST - noise in the charts for 1.5850 and 1.57- Pending
A daily close above 1.64 - Some strength will regain for the near term.
For an intraday session, the cable is trading above 12ema and 35DEMA levels. The pair has support at 1.6240 and resistance, at 1.6280. A breakout either side will give room for intraday trading. On the down side, if it hits 1.6240 it can fall to 1.62 and 1.6160 levels. On the upper side, above 1.6280 it can fly up to 1.6312, 1.6358 and 1.6380.
Sell below 1.6240
