Forecast on GBP/USD for March 28, 2014

Traders eye today’s current account
deficit figures. GBP/USD is trading at 1.6610 in Asia’s trading session. In yesterday’s trading session, the
pair moved towards the 50.0 fib level and was unable to cross the level of 1.6648
(March 18 high). The pair has been continuing its 4-day winning steak. On the
downside, support levels exist at 1.6590, 1.6576 (50SMA), and 1.6555 (23.6 fib
and yesterday’s low). The pair came out from the falling wedge on Wednesday. The next up move will take place only above 1.6654 for targets at 1.6718 and 1.6750. We recommend to go long only above the level of 1.6654.

Forecast:

In the weekly chart, RSI started its
journey towards the downside. It indicates selling on rallies. On a positional
basis, the pair is facing resistance levels at 1.6666, 1.6786, and 1.6823. On the
downside, support exists at 1.6424. On a monthly basis, the level of 1.6424 is
the crucial for the bulls to hold. Below this, 1.6252-1.62, 1.6049, and 1.5929
will be possible.

The material has been provided by InstaForex Company – www.instaforex.com