Is The Honeymoon Over for GBP?

October 5, 2013 in Chart Alert

For last few months we have been referring to the trend-lines which have been in place for past 4 years for GBP/USD. The previous post about the same can be checked at “GBP/USD what to expect – part 2“.

The pair had, at last, broken over the trend line which had turned into a resistance line from a previous support line.

GBP/USD weekly chart

GBP/USD trend lines

After the above mentioned break, the upward moves continued towards the upper trend line which has been an over all resistance trend line. As expected, the resistance came right there and the pair fell sharply.

What to Expect

The price action is above the lower trend-line and a support should come over 1.5440. On fundamental level please check this post about GBP/USD. Considering the debt issues in the U.S. the possibilities of this support is quite high, however, any decisive break below 1.5940/1.5920 will indicate that the upward journey might have already ended and the pair may dive deeper.

Please share your opinions by leaving your comments in the comment box below.

Do also check the weekly GBP/USD forecast and the daily analysis for GBP/USD.

Comments are closed.