27 Jan 2015
GBP/USD may witness a pullback before heading upwards – FXStreet
FXStreet (Barcelona) - FXStreet Analyst and Editor, Omkar Godbole, anticipates that the GBP/USD pair might see a short pull back before heading upwards, with the pair likely to re-test 1.5070 levels ahead of the UK GDP release.
Key Quotes
“The GBP/USD pair witnessed a 100-pip rally, as it closed a few pips below 1.51 levels. The bullish RSI divergence on the daily charts has been confirmed despite which the pair may witness a short pullback before making further up move.”
“As the hourly chart shows, the RSI has breached the rising trend line at a time when the pair is struggling to sustain gains above the falling trend line support located at 1.5096 levels. Thus, the pair is likely to re-test 1.5070 levels (hourly 100-SMA) ahead of the UK GDP data today.”
“On the other hand, a fresh demand for Pounds can be anticipated once the pair breaks above 1.5111 (50% retracement level on the hourly chart). In such a case the immediate upside appears capped at 1.5150.”
Key Quotes
“The GBP/USD pair witnessed a 100-pip rally, as it closed a few pips below 1.51 levels. The bullish RSI divergence on the daily charts has been confirmed despite which the pair may witness a short pullback before making further up move.”
“As the hourly chart shows, the RSI has breached the rising trend line at a time when the pair is struggling to sustain gains above the falling trend line support located at 1.5096 levels. Thus, the pair is likely to re-test 1.5070 levels (hourly 100-SMA) ahead of the UK GDP data today.”
“On the other hand, a fresh demand for Pounds can be anticipated once the pair breaks above 1.5111 (50% retracement level on the hourly chart). In such a case the immediate upside appears capped at 1.5150.”