GBP/USD rises to approach major resistance level
City Index July 22, 2013 9:25 PM
<p>GBP/USD (daily chart) has continued its rise of the past two weeks from the double-bottom low just above 1.4800 to approach major resistance around the […]</p>
GBP/USD (daily chart) has continued its rise of the past two weeks from the double-bottom low just above 1.4800 to approach major resistance around the 1.5400 level. In the process of the recent advance, the currency pair has broken out above key prior resistance levels, including the 1.5000 figure and 1.5250.
The 1.5400 area is both an important support/resistance level that has served as a turning point several times in the past, as well as the 38.2% Fibonacci retracement of the plunge that occurred from the high above 1.6300 in the beginning of the year down to the low above 1.4800 in mid-March.
Having risen off a double-bottom pattern that retested that 1.4800-area low two weeks ago, the price is currently entrenched in an upside correction within an overall bearish trend. If the pair is able to stay below 1.5400 resistance with a subsequent turn back to the downside, the downtrend may seek a continuation with the key objective once again around the noted 1.4800 support level. If there is a breakout above 1.5400, further upside resistance on the current bullish correction resides firmly at the 1.5600 level.
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.