GBP/USD Trading near 1.52 and a Rising Channel Support

by Admin

Awards 2013

GBP/USD 4H chart 4/22/2013 8:03AM EDT

GBPUSD

Rising channel: The GBP/USD has been rallying within a rising channel since the March and 2013 low of 1.4830 as shown in the 4H chart. As we start the week, cable is holding just above 1.52, and just above the rising channel support. The 4H RSI is at 40, a break and hold below which would reflect loss of bullish momentum in the 4H time-frame. A break below 1.52 would probably drag the RSI below 40.

The breakdown of the channel should open up the 1.5030 April low and established support pivot that goes back to March. Below 1.50, we have the 1.4830 low as the next target/support.

Bullish continuation: If the channel support holds, or if after a brief break the market pulls back above 1.53, the GBP/USD would likely be in a bullish continuation, especially if the RSI also comes back above 60 after a failed attempt below 40. This will open up the 1.54 handle up to the 1.5422 level (38.2% retracement of the 2013 downswing from 1.6379 to 1.4830).