GBP/USD maintains long-term highs
James Chen April 15, 2014 10:24 PM
<p>GBP/USD (daily chart shown below) has bounced off its 50-day moving average after pulling back slightly from a conspicuous double-topping pattern. That double-top had its […]</p>
GBP/USD (daily chart shown below) has bounced off its 50-day moving average after pulling back slightly from a conspicuous double-topping pattern. That double-top had its first top in mid-February at the 1.6821 four-year high, and then just a few pips lower last week at 1.6819.
The pattern occurs in the midst of a strong bullish trend that extends back to the July 2013 double-bottom low around 1.4800.
After hitting the second top late last week, the currency pair spent the next several trading days falling back towards its 50-day moving average before rebounding on Tuesday.
Any breakout above the double-top pattern and the noted 1.6821 four-year high would confirm a continuation of the strong bullish trend that has been in place for the past nine months.
In the event of this breakout, the major upside target within long uncharted territory resides around the 1.7000 psychological level, which is also around a high extreme reached in mid-2009.
Key downside support on a further pullback currently continues to reside around the 1.6500 area.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.