The pair has been in a downtrend from 1.70 levels, making lowers highs and lower lows. In yesterday's trading session, the pair took support near the 50daily SMA at 1.6723 and 50.0 fib level, yesterday's low at 1.6732 levels. The initial strong support exists at 1.672 levels. The daily RSI is still in sell favors, but the daily Stochastics completely favors to buyers. As we recommended in yesterday's articles trades wait for 1.674 and then buy, the cable came to 1.6732 and taken an u turn up to 1.6806 levels.
On the up side, the pair is facing resistance at 1.68 levels, once sustain above this, it will fly up to 1.6875 levels. The pair is in safe zone, only above 1.6806 (yesterday's high). If the pair trades above the 1.6806 level, it will pause the downfall for some days and the lower high's formation will terminate. If the pair breaks the 1.672 levels, it will fall immediately up to 1.6696 and 1.666 levels.
Intraday
In Asia's trading session, the pair is trading at 1.6792 levels. The pair looks strong above 1.6806, weak below 1.6782 levels. On the upside, if the pair crosses the 1.6806, then it will shoot up to 1.6822, 1.6875 levels. On the downside, if it trades below the 1.6782, it will correct up to 1.6766, 1.6744 and 1.6720 levels.
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on market trends you may visit via Technical analysis of GBP/USD for May 16, 2014 . Thanks for your support on Technical analysis of GBP/USD for May 16, 2014
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