GBPUSD – Cable Facing Test of Prior Key Support

A combination of sterling weakness and dollar strength over the last few days has driven cable back towards 1.41 at a time when it was showing signs of finally gathering some upward momentum.

The pair now faces a test of its renewed weakness, with 1.4050-1.41 representing a region that it has so far this year found to offer decent support. In the brief period that it did trade below here, this area also became resistance for the pair.


A move below this zone would matter for two reasons. Firstly it would break the combination of higher highs and higher lows (albeit only one of each) that initially pointed to a possible period of bullishness in the pair.

Second, a move below the most recent low could open up a move back towards 1.3835, the low from the end of February.

A failure to break below here may indicate that it has once again been established as an important support zone for the pair, with resistance possibly being around last week’s highs, around 1.45.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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