GBP/USD Strong Upside Intact
Admirals | May 19, 2016 07:22AM ET
Fears of Brexit have diminished at least for the time being, as latest polls suggest that pro EU option leads by 10 % (55 % vs 45 %).
Additionally, very good data for Average Earnings Index and Claimant Count Change has spurred additional bullish momentum, where the GBP/USD reached 1.4660 resistance.
Technically we can see rising MACD, and confluence within first POC that is at 1.4600 zone (pennant breakout , 23.6, round number). Traders should watch for a possible bounce at the zone.
POC2 is 1.4520-35 zone where we see a confluence - DPP, L3, 50. Below is a strong support at 1.4500 with 61.8 and EMA89. If we see another rejection target should be 1.4660, and only on 1H momentum break or 4H candle close above H4 cam pivot 1.4725 could we see 1.4830.
1.4500 should stay firm, else the pair is back in a range with a downtrend potential.
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.