Entering text into the input field will update the search result below

Will GBPUSD Sustain The Upward Momentum?

Jul. 21, 2013 11:54 PM ET
Forex Abode profile picture
Forex Abode's Blog
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

After some struggle against the 55-day EMA, GBP/USD ultimately broke that resistance and closed above it. The high of this upward move was 1.5282.

GBP/USD retracements and 55-day EMA

Isn't it interesting that this high where some resistance was seen was also the 50% Fibonacci retracement of the downward move from 1.5751 to 1.4813? Not only this level brings in the resistance of the 50% retracement but is also slightly below 1.5304 which had proved to be a strong resistance earlier.

But what if both these resistances are broken?

GBP/USD retracements and 200-day SMA

If both these resistances are broken then the next level will have the combined forces of the resistance of 61.8% retracement and the 200-day moving average. The current 200-day SMA is at 1.5404 i.e. just 22 pips above the 61.8% retracement level.

Longer view of the price action w.r.t. the 200-day moving average

Lets also have a peek into the important economic releases from the U.K. and The U.S. during the last week.

Recent Economic Releases

Comparative weight on the basis of last week's economic releases:

What can we Expect

On the upside if there is a decisive break of 1.5304 then we will expect further gains towards 1.5392/1.5404. This zone is expected to be a very strong resistance because of the 61.8% retracement, 200-day moving average and the approaching 1.5500 level. Even if a break of this resistance zone takes place a stronger resistance will be expected near 1.5477.

Do check the GBP/USD weekly forecast and outlook, the daily analysis of GBP/USD and the fundamental outlook of GBP/USD at ForexAbode.com

Connect with the author at Google: +Himanshu Jain.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.