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GBP/USD Today Chart 03/03/2016

GBP/USD continued trading higher on Wednesday and managed to move above the resistance (now turned into support barrier) of 1.4050 (S1). The move has confirmed the positive divergence between our short-term oscillators and the price action. I see the possibility for the rebound to continue, perhaps for a test near the 1.4165 (R1) resistance line. A break above that line could aim for the next resistance of 1.4245 (R2). Further rebound is also supported by our short-term oscillators. The RSI emerged above its 50 line, while the MACD, already above its trigger line, has turned positive. Zooming out to the daily chart, I see that the price structure remains lower peaks and lower troughs below the 80-day exponential moving average, which is pointing down. This keeps the overall outlook to the downside and as a result, I would treat any further near-term advances as a corrective phase of the longer-term downtrend.



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