Full recovery for the pound?

By Julian Yosovitch March 3, 2015 • Reprints http://www.futuresmag.com/2015/03/03/full-recovery-pound#.VPXZt7YppdA.twitter

The GBP/USD pair has shown a significant recovery in recent weeks, returning to $1.555 and opening the week at $1.54.

To speculate for further progress we will need to see a direct break above the actual highs of $1,555, which would be a technical signal that the GBP/USD will extend the move toward the higher level between $1.570 and $1.580. Later, with the break above of this resistance, the dollar will continue with the actual recovery toward a more ambitious front value.

However, if the maximum move of $1,555 is not effectively overcome, we will remain cautious in the short term as bearish signals will remain intact leaving the GBP/USD vulnerable to see further cuts back to $1,535, with $1,515 being the key short-term support level.

If bearish movements continue below $1,515, it will imply a signal of weakness and we can see further losses toward previous lows of $1.50-1.495 without discarding further losses toward more depressed values. Let's take a look at the chart.