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17 Apr 2014
GBP/USD take a pause at 1.6834
FXStreet (Moscow) - GBP/USD has settled close to the Asian highs at 1.6834 after breaking the key resistance of 1.6800
GBP/USD goes to stratosphere
GBP/USD were happy to know that the labour market in the UK is getting stringer and stronger. This is a truly decisive factor as it implies that the economic conditions have improved. We believe the market people have already started adjusting their BOE monetary policy expectations as the regulator will need to take note of these developments. Solid GBP/USD rise on Wednesday stopped at the curtail resistance level of 1.6800, but Asian traders succeeded where the Europeans failed. The pair broke above 1.6800 and settled close to current Asian high at 1.6836. The movement was more of a technical nature as the stops located above the key resistance, when absorbed, accelerated the upside. Should GBP/USD manage to stay above 1.6800/24 zone. the chances for a new rally towards 1.7000 in the long run will increase dramatically. Though on the intraday basis stay patient and cautious as profit taking ahead of long weekend may ruin the bulls’ game.
What price levels and patterns have to be considered?
Spot is presently trading at 1.6835, and next resistance can be seen at 1.6838 (Daily Classic R1), 1.6839 (Daily High), 1.6848 (Weekly Classic R1), 1.6878 (Daily Classic R2) and 1.6938 (Daily Classic R3).
Next support to the downside can be found at 1.6820 (Yesterday's High), 1.6797 (Hourly 20 EMA), 1.6797 (Monthly High), 1.6797 (Weekly High) and 1.6797 (Annual High).
GBP/USD goes to stratosphere
GBP/USD were happy to know that the labour market in the UK is getting stringer and stronger. This is a truly decisive factor as it implies that the economic conditions have improved. We believe the market people have already started adjusting their BOE monetary policy expectations as the regulator will need to take note of these developments. Solid GBP/USD rise on Wednesday stopped at the curtail resistance level of 1.6800, but Asian traders succeeded where the Europeans failed. The pair broke above 1.6800 and settled close to current Asian high at 1.6836. The movement was more of a technical nature as the stops located above the key resistance, when absorbed, accelerated the upside. Should GBP/USD manage to stay above 1.6800/24 zone. the chances for a new rally towards 1.7000 in the long run will increase dramatically. Though on the intraday basis stay patient and cautious as profit taking ahead of long weekend may ruin the bulls’ game.
What price levels and patterns have to be considered?
Spot is presently trading at 1.6835, and next resistance can be seen at 1.6838 (Daily Classic R1), 1.6839 (Daily High), 1.6848 (Weekly Classic R1), 1.6878 (Daily Classic R2) and 1.6938 (Daily Classic R3).
Next support to the downside can be found at 1.6820 (Yesterday's High), 1.6797 (Hourly 20 EMA), 1.6797 (Monthly High), 1.6797 (Weekly High) and 1.6797 (Annual High).