GBP/USD Awaiting Near-term Range Breakout

by Admin

Awards 2013

GBP/USD 1H chart 4/1/2013 8:55AM EDT

GBPUSD

Bullish development, consolidation: There has been some bullish development in the GBP/USD of late. The latest was the breaking of the 2013 falling trendline. The break is not completely clear, as the cable immediately stalled and started to trade around 1.52, in a sideways range as seen in the 1H chart. The 1H chart shows a slight bullish stance judging from the moving average orientations and the RSI reading.

Breakout scenarios: A break above 1.5220 should continue a near-term bullish outlook toward the next resistance pivot at 1.5320. A more aggressive upside correction should at least get to 38.2% retracement at 1.5422.

A break to the downside below 1.5175, would reflect choppy non-direction. It shouldn’t completely invalidate the bullish breakout, but at the same time, it does open up near-term lows in the 1.5090-1.5110 area.