GBP/USD rebounds from 50-day moving average
James Chen May 19, 2014 9:02 PM
<p>GBP/USD (daily chart) has attempted a rebound from support around the 1.6750 price area and the 50-day moving average, after having pulled back from its […]</p>
GBP/USD (daily chart) has attempted a rebound from support around the 1.6750 price area and the 50-day moving average, after having pulled back from its new four-year high of 1.6995. That high, just slightly short of its 1.7000 psychological target, was reached in early May, before the currency pair spent the following week pulling back down to key support. This price action occurs within the context of a sharp and unrelenting bullish trend that has been in place for the past 10 months – since the 1.4800-area low in July of 2013.
Having just bounced from its 50-day moving average, GBP/USD appears to be moving towards a continuation of the entrenched bullish trend. The short-term upside target remains at the 1.7000 psychological resistance level, with any further upside breakout potentially targeting the 1.7250 resistance area. To the downside, near-term support continues to reside around the 1.6750 level and the 50-day moving average.
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