GBPUSD 2015-05-04

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Correction Phase ; temporary bearish correction

On the short-term , market bounced clearly to the downside after testing 1.5500 level, to achieve some temporary bearish correction, market break resistance levels which is considered a pivotal levels on the mid-term are (1.5100/1.5050) and still stable above it, which forms good support base that supports continuing the positive scenario in the upcoming period, and as we expected the market successful to breach 1.5380 level, , where its next main target at 1.5700 level initially. However , the uncertainty for the British pound is coming from the election , so , we do expect high volatility on the currency for the coming weeks .

Most of the currencies are going on a stabilizing rate between certain levels to consolidate the recent strong move we have seen on the last 6 months. As we have mentioned before ; the breakout was on the downside which means further drop toward 1.42 levels for the mid-term and that means the continuation for the strong dollar across the markets.

On the long-term view : still a lower levels is expected with stabilizing near 1.30s levels , the major turning point would be the May elections – The dollar effect which mainly would move the rate ; however , the stabilization is expected because of the expectation that BoE would hike rate after the Fed expected move.

Daily Trend: Down
Weekly Trend: Down

  Support Resistence
Level 1 1.5100 1.5250
Level 2 1.5050 1.5380
Level 3 1.4950 1.5555


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