The British bank mortgage approvals fell to the lowest level since August 2013. The British Bankers' Association said its members approved 42,173 mortgages in April, consecutive falling for 3 months, down from 45,045 in March. The negative data pushed the pound to lower levels with high volume compared to the previous three days.
Positional forecast-
GBPUSD held the lower trend line and pushed to resistance levels. In Asia's trading session, the pair opened above the 1.68 levels and is trading at 1.6811. The oversold levels saved the cable. On the down side, the cable has strong support at 1.678, 1.676 and 1.673 levels. On a positional basis, a day close below 1.676 (50-day SMA), bears will completely take control and send the pair towards 1.666, 1.655 and 1.6465 levels. The daily RSI still favors "selling the rise" strategy.
On the up side, the pair has strong resistance at 1.683-1.6840 levels, above which 1.6853, 1.6865 and 1.69 is the crucial resistance levels. Until the pair trades below 1.6921 on the downside, 1.666 is an inital open target. For the bull side, they can try to buy on dip with sl 1.676 on cb for a pull back.
Intraday-
The hourly momentum oscillators favor pull back side from the oversold levels. The cable is facing strong resistance at 1.6815. The intraday resistance was framed between 1.6815-1.6821. Safe traders can buy above 1.6822 for initial targets 1.6840, 1.6850 and 1.6888. The bulls must close above 1.6832 to prove their existence, if it closes below 1.6796, the bears will take control. On the down side, the pair has initial support at 1.678 levels, below this, the cable will fall to 1.6766, 1.6744 and 1.673 levels.
Recommendations-
Safe traders- buy above 1.6822 or wait for a dip at 1.6804-1.6790.
Sell below 1.6780, targets are 1.6766, 1.6744 and 1.6735.
Buy on the dips for 1-2 days perspective.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Intraday recommendations of GBP/USD for May 28, 2014 . Thanks for your support on Intraday recommendations of GBP/USD for May 28, 2014
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