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Forex Flash: The bias favors the USD at 1.5300 to target at 1.5115/14907 - RBS

FXstreet.com (San Francisco) - After rising in the last two weeks, the GBP/USD has opened the week with losses after falling from 1.5260, highest level since February 22nd, to test the 1.5170 level in the last hour. Currently the pair is trading 0.30% down on the day inside in a slightly trend according to the FXstreet.com Forex Studies in the 1-hour time frame.

The Sterling has been trading in recovery mode against the Greenback from the 1.4830 level reached on March 12 to reach the 1.5200 level in a 2.85% upside movement. But according to the RBS Senior FX Strategist Paul Robson, "despite the bullish two weeks, GBP has witnessed the bias is to begin to fade this move higher as the market approaches the all important 1.5300/5330 level in the coming weeks."

"The immediate stand-out technical level is the previous support band at 1.5300/5330 which, up until February this year, had supported price action very successfully since the summer of ’10," continues Robson. "So often in price action support morphs to resistance and resistance morphs to support."

In this line, "the bias here is to begin to refavor the USD when the market creeps higher back towards 1.5300 and to re target the 1.5115/1.4907 levels," concludes RBS' analyst.

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