GBP/USD (currently at: 1.5745) continued uptrend run to break 1.5699 and it fell after touching 1.5766. This is what I expected in this post.
The BOE is still watching the economic data of UK with no serious action. However, the recent data was strong enough to push everyone to buy sterling pound, this is what I call the election sales. On the other hand, the dollar is still suffering from uncertainty and mixed expectations about the timing of the first rate hike. In addition, moderate to weak economic data releases had effect too on the US dollar. Sterling pound is strong enough to stay for a while within this range and the way to 1.5805 (the next major resistance) should be very easy.
My technical overview adds another space for the current uptrend rally again and I can see that there is higher chances that this uptrend will last for a while till we break 1.5805 first and then, we will see whether this trend will continue or not. This move will be struggling battles between bears and bulls during the next few days or weeks and the sideline moves will be noticed once we move above 1.5805. Buy GBP/USD and watch this resistance level: 1.5805 as a checkpoint for this rally. Our close support levels are: 1.5000 and 1.5565
The GBP/USD has the following major resistance and support levels:
- RESISTANCE: 1.6000
- SUPPORT: 1.4334
Breaking these levels in any direction will take us higher or lower.
My Daily BUY/SELL advice (30 pips stop-loss applied):
- Sell: at 1.5805 – Take profit 1.5705 (100 pips profits)
- Sell: at 1.5990 – Take profit 1.5890 (100 pips profits)
- Buy: at 1.5650 – Take profit 1.5750 (100 pips profits)
- Buy: at 1.5550 – Take profit 1.5750 (200 pips profits)
- Buy: at 1.5565 – Take profit 1.5665 (100 pips profits)
This review is valid during trading week: 13th to 15th of May, 2015