Today traders eye the UK prelim GDP. The UK Prelim GDP is probably the most important of the GDP releases. For the last 2 months, the released data showed a positive wave towards the GBP. The released data hinted the UK recovery in a full swing. Manufacturing, employment, retail sales and trade balance figures all printed positive waves, but the real estate sector is still deflated, industrial production fell short and the current account data revealed a much larger-than-expected deficit last month. We forecast the GDP at 0.9%, (previous at 0.7%). If the printed data beats the expectations, the strength of the currency could put pressure on Carney to tighten policy. The better-than-expected GDP could put pressure on the BOE to be considerably more active throughout the coming months.
Technical view-
Long term forecast- GBP/USD has been in an uptrend from 1.6465 levels, aiming at 1.6875, 1.70, and 1.7050 levels in the short term. The pair gave a long-term upside breakout on December 2013 targeting bigger targets in the years ahead. The bigger targets will come into existence once the pair crosses the 1.7043 levels. The major trend reversal is placed at 1.62 levels and major support is placed at 1.6465 and 1.6430 levels, based on the monthly charts. The pair is reaching to the crucial long-term key level (1.7043), so it is not a wise decision to enter fresh positional longs at higher levels. Kindly be patient for a dip or enter at a safe level once it crosses the 1.7043 levels, this is only for long-term traders.
Medium term-
Safe traders can enter longs only above 1.6875 in the near term, target is 1.70 and 1.7050 levels. The weekly charts are showing a limited upside at this current juncture (may be 1.6875 or 1.70 levels).
Intraday-
In Asia the pair is trading at 1.6810 levels. It is taking support at 1.68 (50SMA) in H4 chart. Once the trades are below the 50SMA, the next minor support exists at 1.6778, 1.6763, 1.6696, and 1.6660 levels. Safe traders can enter long positions only above 1.6875. We expect the pair will go back again to get enough support at 1.6763 or 1.67 levels before moving further up. The pair looks safe only above 1.6823.
Buy above 1.6875 for targets at 1.6910, 1.6975, and 1.70 levels.
Sell with sl 1.6875 on a closing basis.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Technical analysis of GBP/USD for April 29, 2014 . Thanks for your support on Technical analysis of GBP/USD for April 29, 2014
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