GBP/USD – Breakout to New High Testing the 1.55 Handle

by Admin

Awards 2013

GBP/USD 4H chart 4/26/2013 10:20AM EDT

GBPUSD

Breakout: The GBP/USD briefly consolidated after the breakout above 1.5411 previous April-high. It was held under 1.5480 during the 4/25 session, but found strength during the 4/26 session when the USD weakened across the boar after Q1 GDP grew 2.5%, but came short of forecasts. This pushed GBP/USD above the 1.5480 consolidation high and is now testing the 1.55 handle.

Target: The previous GBP/USD update noted a target of 1.56-1.5610 which contains 50% retracement of the 2013 bear run. This could open up if the market pushes cable above 1.55. But as the 4H RSI climbs above 70, watch out for a correction before another attempt towards these levels. A break below 1.5380 could neutralize the bullish outlook in the short-term.