GBP/USD intraday technical and fundamental review for May 22, 2013
May 22, 2013 11:00 am
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 1.5075.
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 around 1.5060 which comes to meet the pair before 1.5035 (4th of April’s low).
Resistance levels: 1.5200, 1.5370, 1.5580, 1.5650, and 1.5850.
Support levels: 1.5060,1.5030, and 1.4975.
Breakdown of the recent low at 1.5310 then 1.5200 resumed the ongoing bearish momentum reaching down to 1.5075.
On Monday, 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).
The GBP/USD pair still has further bearish targets at 1.5060 then 1.5030 initially. However, the pair may find intraday demand zone at 1.5070 which comes to meet the lower limit of the channel) that will probably pause the ongoing bearish pressure allowing for a possible retracement towards 1.5200 again.
Breakdown of 1.5070 brings another bearish swing to the market.
Fundamentally, British retail sales fell during the month of April unlike expectations, the largest food sales decline for nearly two years indicating the continuity of weak consumer spending.
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 1.5075.
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 around 1.5060 which comes to meet the pair before 1.5035 (4th of April’s low).
Resistance levels: 1.5200, 1.5370, 1.5580, 1.5650, and 1.5850.
Support levels: 1.5060,1.5030, and 1.4975.
Breakdown of the recent low at 1.5310 then 1.5200 resumed the ongoing bearish momentum reaching down to 1.5075.
On Monday, 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).
The GBP/USD pair still has further bearish targets at 1.5060 then 1.5030 initially. However, the pair may find intraday demand zone at 1.5070 which comes to meet the lower limit of the channel) that will probably pause the ongoing bearish pressure allowing for a possible retracement towards 1.5200 again.
Breakdown of 1.5070 brings another bearish swing to the market.
Fundamentally, British retail sales fell during the month of April unlike expectations, the largest food sales decline for nearly two years indicating the continuity of weak consumer spending.
The material has been provided by InstaForex Company – www.instaforex.com
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