GBP/USD Enters Resistance Zone Before BoE
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: The GBPUSD has entered the bottom of a resistance zone defined by the 4/11 high (1.5409), 5/7 low (1.5445), 5/3 low (1/5480), and 78.6% retracement of the decline from the May high (1.5478). 4/25 was a large volume day and that close level at 1.5432 is important. The line that extends off of the September and November 2012 highs and February highs is just above current price. Bottom line, the GBPUSD is at resistance.
FOREX Trading Strategy: Wrote yesterday that “strength from here might allow a short above 1.5400.” Those that short now incur BoE risk and I prefer to enter during European hours if I’m trading the GBPUSD. Intraday updates will be disseminated via Twitter @JamieSaettele.
LEVELS: 1.5156 1.5191 1.5239 1.5410 1.5445 1.5480
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.