GBPUSD Breaks Above 50% Retracement Level

June 11, 2013 in Chart Alert

GBP/JPY breaks above the 50% retracement level of the downward move from 1.6381 to 1.4831.

GBPUSD’s break above the 1st resistance

GBP/USD breaks ove 50 percent retracement

This break indicates that we can expect further gains towards the 61.8% retracement which is at 1.5788. We had discussed this in yesterday in this chart alert for GBPUSD. What we had missed to mention in the last alert that the second resistance of the previous support line which seems to have turned into resistance also falls near the 61.8% retracement and hence that level becomes a crucial resistance zone. A break over that may bring some good gains for the currency pair but a failure near that level may bring deeper falls.

GBP/USD’s weekly chart with trend line resistance

GBP/USD weekly chart - long term trend lines

You may also like to check GBP/USD outlook which is updated on the weekends.

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