GBPUSD: Hesitating But Still Biased To The Upside Short Term.

[FXTechstrategy Team]

GBPUSD: While the pair’s broader bias may be pointing higher in the short term, it requires a break and hold above the 1.6130 level, its Dec 04’2012 high to resume that trend. This if seen will call for a push towards the 1.6172 level and then the 1.6215 level. Further out, resistance resides at the 1.6350 level followed by the 1.6400 level, its psycho levels. On the downside, if GBP fails to return above the 1.6130 level, further declines could develop towards 1.5987/60 levels. A violation of here will call for a run at the 1.5827 level. Further down, the 1.5774/78 levels come in as the next downside with a breach turning attention to the 1.5457 level. On the whole, GBP continues to hold on to its short term upside bias though facing bear threats.

 

[ezekiel chew]

GBPUSD: While the pair’s broader bias may be pointing higher in the short term, it requires a break and hold above the 1.6130 level, its Dec 04’2012 high to resume that trend. This if seen will call for a push towards the 1.6172 level and then the 1.6215 level. Further out, resistance resides at the 1.6350 level followed by the 1.6400 level, its psycho levels. On the downside, if GBP fails to return above the 1.6130 level, further declines could develop towards 1.5987/60 levels. A violation of here will call for a run at the 1.5827 level. Further down, the 1.5774/78 levels come in as the next downside with a breach turning attention to the 1.5457 level. On the whole, GBP continues to hold on to its short term upside bias though facing bear threats.

British Pound / US Dollar broke above the upside resistance level of 1.59, 18 day(s) ago. This is a bullish sign. This previous resistance level of 1.59 may now provide downside support. Volume on the day of the breakout was quite heavy--0% above average. This makes the breakout even more significant. If you decide to trade British Pound / US Dollar, you may want to place a stop loss just below the resistance level, in case the breakout is premature.Volume on the day of the breakout was quite light--0% below average. The most reliable breakouts are accompanied with increased volume. However, prices have risen some distance since breaking out--1.52%, thereby adding more validity to the breakout.
The RSI has just reached its highest value in the last 14 days. This is BULLISH signal.