GBP/USD Continues to Consolidate above a Rising Channel Support

by Admin

Awards 2013

GBP/USD 4H chart 4/24/2013 7:55AM EDT

GBPUSD

Rising channel: The GBP/USD remains trading in a rising channel since the 1.4830 March and 2013 low. However, since hitting 1.5411, cable fell lower and has been consolidating since. It has come down to around the 1.52 handle, almost testing the rising channel support. So far, the market remains above the channel support though the bullish outlook has been subdued.

Breakout: A break below 1.52 at this point could break below the rising channel support. If this is accompanied by the 4H RSI dropping below 40, it is likely a sign of breakdown and at least some short-term bearish outlook with 1.50 handle to 1.5030 support pivot in sight before opening the 1.4830 low.

Holding above 1.52 and returning above 1.53 however, would reflect a market maintaining the bullish bias, especially if the 4H holds above 40 and returns above 60. This could be also a sign of bullish continuation which first opens up April highs in the 1.54-1.5411 area.