Technical analysis of GBP/USD for October 09, 2014

The pair gave strong close in yesterday’s session. The pair
has strong resistance at 1.6210 200Wema and 20Dsma 1.6235 levels. In case, if
the pair closes above 20Dsma 1.6235 and the weekly resistance trend line, the
near-term trend turns positive. On the down side, the pair has support at 1.6090,
1.6050 and 1.5950 levels. Today as of now, the pound was unable to breach the
previous day high of 1.6181 levels. Like EUR/USD, the pound as well breached and
closed above the 13-days descending trend line, but is facing strong resistance at the 2-month descending trend line.

Support 1.6090, 1.6050, 1.5950

Resistance 1.6181, 1.6210, 1.6235

For an intraday view, the prices are closed above 12ema.
For the last 3 days the prices have been supported by 35DEMA on an hourly closing basis. We
recommend fresh buying above 1.6182 only. The pair support is at 1.6129, 1.6091
and 1.6025 levels. Risky traders can start selling below 1.6150 for targets 1.6130, 1.61
and 1.6025 levels. Buy above 1.6182 for targets at 1.62, 1.6235 and 1.6250, may be
even 1.63 levels.

Trade-

Buying above 1.6182

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