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Will GBP/USD Sustain The Upward Climb?

July 20, 2013 11:32 pm GMT+0  in Chart Alert

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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

GBP/USD 55 day EMA with Fibonacci retracements

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

GBP/USD 200 day SMA with Fibonacci retracements

 

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 

GBP/USD and 200 day moving average

You may also like to check GBPUSD weekly outlook and GBPUSD daily analysis.

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