British pound finding buyers as London session starts

Saqib Iqbal Black Pipper Forex

The British Pound fell sharply from then 1.4000 handle on Monday towards the broken resistance of 1.3915. This was a key resistance that the GBP/USD pair managed to break and shoot up in the last week. Now the broken resistance has been turned to the support for the falling price.

The falling price found some buying interest and is trying to accumulate some strength at the level. Please note that the resistance turned support has a confluence with 20-period SMA as well. However, the volume is not quite significant at the moment.

Trading scenario

You can buy the GBP/USD around the horizontal level of 1.3915. Potential upside targets could be the previous day's top at 1.4008 ahead of 1.4050 and then 1.4100 handles. Alternatively, if the price moves back below the support area and sustains there for another hour or two, then look for selling opportunity with potential downside targets at 1.3875 ahead of 1.3840 and then 1.3800 handles.

Author

Saqib Iqbal

Black Pipper Forex

Saqib Iqbal is a technical analyst, mentor and funds manager with nine years of experience in the industry. His trading methodology is based on institutional orderflow and volume-spread which helps to identify setups with a great return.

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