GBP/USD
Today the pair is packed with vital economic events. Traders eye unemployment benefits, unemployment rate, BOE's Governor speech, and inflation report. We expect the UK unemployment rate will fall to 6.8%. The inflation data is more crucial and is to be vigilant. The pair is under a healthy correction and have strong support at 1.6820 levels; below this, 1.6795 is a very strong support level.
The pair opened on a bullish note; it is trading at 1.6826 levels. We expect the pair will face huge volatility ahead of a series of economic events. We favor the buy side at cmp or even a dip. The hourly momentum indicators are supporting my view. The pair will move to 1.6862, 1.6885, and 1.69 levels. Once the pair crosses and sustain above 1.6911, it will spike up to 1.6930-1.6940 levels immediately.
The pair has been making a lower highs pattern, so today the pair must break the bearish pattern to resume its down side journey. For that the pair must cross above 1.6883 levels. On a closing basis, if the pair closes above 1.6883, the bulls will be back on track to make new highs. On the down side, if the pair closes below the 1.682 levels, the bears will take control. The pair looks safe for buying when it trades above the 1.6837 levels.
Recommendations- cmp 1.6826.
Buy at cmp or even dip for targets at 1.6862, 1.6885, and 1.69.
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 May 14, 2014 . Thanks for your support on Technical analysis of GBP/USD for May 14, 2014
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