GBP/USD intraday technical and fundamental review for May 21, 2013
May 21, 2013 2:00 pm
Supply zone located around 1.5550-1.5600 (the upper limit of the depicted bullish channel and 50% Fibonacci level) provided considerable resistance for the cable last week. It pushed the pair down to 1.5160.
Previous consolidation range above 1.5200 was broken down, breaking the lower limit of the ascending channel as well then we had daily closure below 1.5190 on Friday.
Based on this bearish range breakout mentioned above, the cable has projection target at 1.5060.
Resistance levels: 1.5200, 1.5370, 1.5580, 1.5650, and 1.5850.
Support levels: 1.5085,1.5030, and 1.4975.
Breakdown of the recent low at 1.5310 then 1.5200 resumed the ongoing bearish momentum reaching down to 1.5160.
Yesterday, there was a bullish trial to step again above 1.5200. However, the movement was stopped at 1.5275 (within the depicted short term bearish channel).
Failure to consolidate above 1.5200 enabled the pair to reach 1.5150 quickly. However, the pair has intraday demand zone at 1.5100-1.5110 (lower limit of the channel) that will probably pause the ongoing bearish pressure allowing for a possible retracement towards 1.5200 again.
The next visit to the broken demand zone at 1.5200 stands as strong Intraday resistance for the pair will probably provide a good SELL entry with SL just above 1.5270.
Fundamentally, the cable fell to its lowest levels in six weeks against USD after a governmental report showed a decline in inflation rates in the United Kingdom more than expected in April, compared with analysts expectations.
The material has been provided by InstaForex Company – www.instaforex.com
Supply zone located around 1.5550-1.5600 (the upper limit of the depicted bullish channel and 50% Fibonacci level) provided considerable resistance for the cable last week. It pushed the pair down to 1.5160.
Previous consolidation range above 1.5200 was broken down, breaking the lower limit of the ascending channel as well then we had daily closure below 1.5190 on Friday.
Based on this bearish range breakout mentioned above, the cable has projection target at 1.5060.
Resistance levels: 1.5200, 1.5370, 1.5580, 1.5650, and 1.5850.
Support levels: 1.5085,1.5030, and 1.4975.
Breakdown of the recent low at 1.5310 then 1.5200 resumed the ongoing bearish momentum reaching down to 1.5160.
Yesterday, there was a bullish trial to step again above 1.5200. However, the movement was stopped at 1.5275 (within the depicted short term bearish channel).
Failure to consolidate above 1.5200 enabled the pair to reach 1.5150 quickly. However, the pair has intraday demand zone at 1.5100-1.5110 (lower limit of the channel) that will probably pause the ongoing bearish pressure allowing for a possible retracement towards 1.5200 again.
The next visit to the broken demand zone at 1.5200 stands as strong Intraday resistance for the pair will probably provide a good SELL entry with SL just above 1.5270.
Fundamentally, the cable fell to its lowest levels in six weeks against USD after a governmental report showed a decline in inflation rates in the United Kingdom more than expected in April, compared with analysts expectations.
The material has been provided by InstaForex Company – www.instaforex.com
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