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GBP/USD: 1.46 might see a base – RBS

FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, views that 1.46 may see a base with further recovery looming or GBP/USD.

Key Quotes

“The market has broken through an important support level of 1.49, but at the same time the weekly MACD displayed a positive divergence and price found support at the 1.46 retracement. This is a key level, as it coincides with the 61.8% swing extension from the Feb-Mar impulse wave.”

“Given the daily Hammer pattern formed yesterday after the market rejected the levels below 1.46 and the abovementioned signals from the weekly chart, I believe there is a good chance of the 1.46 support level seeing a base in Cable with further recovery on the table.”

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