Will GBP/USD Sustain The Upward Climb?
July 20, 2013 11:32 pm GMT+0 in Chart Alert
After some struggle against the 55-day EMA, GBP/USD ultimately broke that resistance and closed above it. The high of this upward move was 1.5282.
GBP/USD retracements and 55-day EMA
Isn’t it interesting that this high where some resistance was seen was also the 50% Fibonacci retracement of the downward move from 1.5751 to 1.4813? Not only this level brings in the resistance of the 50% retracement but is also slightly below 1.5304 which had proved to be a strong resistance earlier.
But what if both these resistances are broken?
GBP/USD retracements and 200-day SMA
If both these resistances are broken then the next level will have the combined forces of the resistance of 61.8% retracement and the 200-day moving average. The current 200-day SMA is at 1.5404 i.e. just 22 pips above the 61.8% retracement level.
Longer view of the price action w.r.t. the 200-day moving average
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