GBP/USD – What To Expect Part 2
September 13, 2013 in Chart Alert
GBP/USD moved exactly as we had predicted in our previous chart alert titled GBP/USD – What to Expect?. In fact it would be better to see that post first.
The pair moved up to 1.5885 which was just 8 pips below the lower range of the resistance zone mentioned in the last and above mentioned update.
This move brought GBP/USD almost at the trend line which was previously the support trend line but later had turned into a resistance trend line.
GBP/USD weekly chart for past 4 years
Let’s see another weekly chart with retracement levels:
As clear by the above chart that a break over 1.5789 had represented a break over 61.8% retracement level of the move from 1.6381 to 1.4831. The pair had failed well ahead this level twice. This break surely indicates the bullish sentiments. However a caution is required considering the trend line resistance as indicated in the first chart.
What to Expect?
Resistance in the 1.5893 to 1.5940 zone is still expected. A break above this should target 1.6000 psychological zone but again a resistance will be expected in 1.6000 to 1.6015 zone.
Please share your opinions in the comment box below to discuss about the GBP/USD price action more.