GBP/USD Maintains Long-Term Highs
FX Solutions | Apr 16, 2014 12:44AM ET
GBP/USD (daily chart shown below) has bounced off its 50-day moving average after pulling back slightly from a conspicuous double-topping pattern. That double-top had its first top in mid-February at the 1.6821 four-year high, and then just a few pips lower last week at 1.6819.
The pattern occurs in the midst of a strong bullish trend that extends back to the July 2013 double-bottom low around 1.4800.
After hitting the second top late last week, the currency pair spent the next several trading days falling back towards its 50-day moving average before rebounding on Tuesday.
Any breakout above the double-top pattern and the noted 1.6821 four-year high would confirm a continuation of the strong bullish trend that has been in place for the past nine months.
In the event of this breakout, the major upside target within long uncharted territory resides around the 1.7000 psychological level, which is also around a high extreme reached in mid-2009.
Key downside support on a further pullback currently continues to reside around the 1.6500 area.
Disclosure: FX Solutions assumes no responsibility for errors, inaccuracies or omissions in these materials. FX Solutions does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FX Solutions shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials.
The products offered by FX Solutions are leveraged products which carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.