GBP/USD in Bullish Breakout; Next Target is 1.56-1.5610

by Admin

Awards 2013

GBP/USD 4H chart 4/25/2013 7:00AM EDT


Rising channel; bullish continuation: The GBP/USD remained in a rising channel, holding above 1.52 and breaking above 1.53 during the 4/25 Asian and European sessions. As noted in the previous GBP/USD update on FXTimes, a break above 1.53 was seen as a signal for a bullish continuation that at least opened up the 1.54-1.5411 high. The rally was sharper than that pushing above a 38.2% retracement (of the 2013 downswing) at 1.5422.

Momentum; throwback: The RSI shows a bit of overbought condition for momentum in the 4H chart. Will there be a throwback? Trends can develop fast, but if you look at the previous couple of upswings, there were some corrections before continuation. If so, the 1.54 is one level to monitor. If that breaks we can anticipate support around a previous pivot area between 1.5360-1.5365.

Targets: In the daily chart, you can see that today’s price action is confirming a bottom. Now that the 38.2% retracement is broken, we might look for 1.56-1.5610, which contains the 50% retracement and then possibly the 1.5750-1.5760 area that contains the 200-day SMA, up to 1.5788 which is the 61.8% retracement.

GBP/USD Daily chart 4/25/2013 7:10AM EDT