Since breaking major support at 1.5250/5350 GBP has continued to trace a 5-wave decline from the 1.6381 high. The trend has clearly shifted in all timeframes but momentum has been diverging bullishly as price wedged to new lows. Yesterday’s bullish hammer candle is being confirmed today (so far) with a bullish white bar. S/t, there is little signs of a base barring the bullish wedge in to recent lows but Sterling is up against two important resistance levels this morning. Bettering the downtrend from mid-February at 1.4975 and the recent pivot lows at 1.4981 could lead to a sharper correction in the near-term. Above 1.4981, major resistance surfaces at the hourly wave-4 & (4) highs of 1.5217 which sit just below the major breakdown level mentioned above. Key support is now yesterday’s hammer low at 1.4832. Levels: Support – 1.4923, 1.4916, 1.4832 Resistance – 1.4975, 1.4981, 1.5217
Nomura