Flash: GBP/USD charts a bullish engulfing pattern – Commerzbank

FXstreet.com (London) - Technical analysts at Commerzbank have explained that GBP/USD charted a bullish engulfing session yesterday, and that this suggests the market will continue to hold above their 1.5035/1.4997 target zone, made up of the April and the 20th of March lows as well as the 78.6% Fibonacci retracement of the March-to-May rise.

Rallies are expected by them to find initial resistance at the 1.5159 May 17 low. They will remain immediately bearish while GBP/USD trades below its May 16 high at 1.5322. They said that the key resistance is seen at the 1.5601 50% retracement of the down move seen this year. While trading below here, GBP/USD is viewed as having topped. Support at 1.4997 is regarded as the last defence for 1.4832, the March low.