GBP/USD: Scope For A Move Higher
Carol Harmer | May 07, 2014 03:46AM ET
We hit 1.6998 yesterday and GBP/USD looks strong again. I know we have the 1.7000 psychological barrier, but there is scope for a move higher with 1.7045 the targeted area at which point the market will be overbought on the daily charts. Still, the pair turned bullish at extreme high levels yesterday. This needs to be watched closely. However, looking at the weekly charts we are still very much in the uptrend which started in July of last year, and these charts show no sign of turning.
60 min charts are bullish and neutral, leaving room for further strength this morning. We should cover longs at 1.7045 if seen; We should then look for a move lower, back to the daily pivot of 1.6946, tying in nicely with our 1.6945/35 support. If short, cover to here, then re-instate longs looking for the uptrend to resume.
Only worry about longs if the market makes a break below 1.6900. If this occurs, look for 1.685 before buying once more.
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