Today traders eye G20 meeting. The Group of 20 major economies have promised to target a two percentage point increase in the global growth rate over five years and create tens of millions of jobs worldwide. While geopolitical risks emanating from the Ukraine crisis will be discussed, growth will top the agenda at the meeting. The Federal Reserve officials are worried about inflation and the signals they were sending about interest rates at their two day policy meeting March 18-19.
Technical view-
Positional
GBP/USD is trading in a long-term bullish pattern aiming at new highs at 1.838 levels in the next couple of months. This view is invalid when the pair closes below the 1.6220 levels. Currently, it is trading near the previous high level at 1.6823 made on February 27, 2014. The RSI is still in the positive zone (weekly chart) favoring this pair to make a new high, probably today. If the pair closes the day above the 1.6823 levels, it will fly up to 1.6920 and 1.7076 levels as an immediate target. Before making a new fresh high, we expect a bit of correction towards 1.6718 levels. After a day close below the 1.6718 level, the pair is set back to correct up to 1.6684 and 1.6554 within support at 1.66 levels. Positioanl traders, please wait for a dip to enter fresh longs for new highs.
Intraday- limited upside and set for correction
In the H4 chart, the pair is taking support at 1.6786 levels. It looks tired to make a fresh new level. The momentum indicators are giving an overbought indication, the result of which is limited upside and open gates for a correction. On the up side, the pair has resistance levels at 1.6823. Above this, it can go up to 1.6920. We expect before moving to 1.6920 levels, the pair will take a back seat and all set for a correction. Safe traders can enter shorts at higher levels for targets at 1.6786 and 1.6718 levels. This view is valid up to Monday. Once the pair breaks below the 1.6718 level, it will panic up to 1.66 levels.
joseph.wind@analytics.instaforex.com
The material has been provided by InstaForex Company - www.instaforex.com
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