GBPUSD: Bullish Within Range Pattern.
GBPUSD: GBP remains sandwiched between its symmetrical triangle and the 1.6397 level as it looks for meaningful directional moves. On the lower time frame (daily chart), range trading environment is now in play. This looks to continue for a while as its Feb’2011 gains were wiped out in Mar’2011 suggesting consolidation with downside risk could be developing. Above the 1.6397 level will reverse this view and open the door for further strength towards the 1.6455 level. Further out, resistance stands at the 1.6720 level and then the 1.6875 levels, its Nov 2009 high and ultimately, its 2009 high at 1.7041. Alternatively, the major risk to our bullish outlook on GBP is a continued hold within its symmetrical triangle/range trading patterns. Support lies at the 1.5964 level where a violation will call for more declines towards its Dec 26’2010 low at 1.5344. We expect the pair to find a respite here and turn higher.