GBP/USD intraday technical & fundamental review for May 9, 2013
May 9, 2013 1:00 pm
The GBP/USD pair is still trading within the same consolidation range 1.5480-1.5590 which was established after the previous breakout that took place of April 25.
As long as supply zone located around 1.5550-1.5600 (the upper limit of the depicted bullish channel and 50% Fibonacci level) is still intact, the cable remains bearish in the short-term to be targetting the prominent support around 1.5370-1.5400.
By breakdown of the lower limit of the current range at 1.5470, the cable has its way opened towards 1.5380-1.5400, the upper limit of previous consolidation range.
Resistance levels: 1.5580, 1.5650 and 1.5850. Support levels: 1.5380, 1.5230, and 1.5030.
Stabilization of the supply zone at the upper limit of the channel at 1.5590 allows a double top reversal pattern to be anticipated and confirmed with 4H closure below 1.5480, the bearish momentum will be targeting at 1.5430, 1.5365 then at 1.5200.
Despite the uptrend breakdown that took place on Tuesday, the key zone 1.5480-1.5500 managed to maintain price above pushing it towards 50% Fibonacci again ( strong resistance ).
The intraday view of the pair remains neutral as long as the current consolidation range 1.5480-1.5590 remains intact. However, breakout in either direction will probably provide a valid entry.
Fundamentally, Sterling Pound rose against the dollar today, reaching the highest level during the session following the release of the British industrial data for March which exceeded expectations.
Traders are waiting for financial policy decision issued by the Bank of England later in today.
The cable has dependable demand level around 1.5380 where price action should be watched as it may provide long entries.
The material has been provided by InstaForex Company – www.instaforex.com
The GBP/USD pair is still trading within the same consolidation range 1.5480-1.5590 which was established after the previous breakout that took place of April 25.
As long as supply zone located around 1.5550-1.5600 (the upper limit of the depicted bullish channel and 50% Fibonacci level) is still intact, the cable remains bearish in the short-term to be targetting the prominent support around 1.5370-1.5400.
By breakdown of the lower limit of the current range at 1.5470, the cable has its way opened towards 1.5380-1.5400, the upper limit of previous consolidation range.
Resistance levels: 1.5580, 1.5650 and 1.5850.
Support levels: 1.5380, 1.5230, and 1.5030.
Stabilization of the supply zone at the upper limit of the channel at 1.5590 allows a double top reversal pattern to be anticipated and confirmed with 4H closure below 1.5480, the bearish momentum will be targeting at 1.5430, 1.5365 then at 1.5200.
Despite the uptrend breakdown that took place on Tuesday, the key zone 1.5480-1.5500 managed to maintain price above pushing it towards 50% Fibonacci again ( strong resistance ).
The intraday view of the pair remains neutral as long as the current consolidation range 1.5480-1.5590 remains intact. However, breakout in either direction will probably provide a valid entry.
Fundamentally, Sterling Pound rose against the dollar today, reaching the highest level during the session following the release of the British industrial data for March which exceeded expectations.
Traders are waiting for financial policy decision issued by the Bank of England later in today.
The cable has dependable demand level around 1.5380 where price action should be watched as it may provide long entries.
The material has been provided by InstaForex Company – www.instaforex.com
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