GBP/USD
The UK inflation rose in April. The CPI grew by 1.8% in April, up from 1.6% in March expected at 1.7%. It rose more than expected. The UK producer price inflation remained low in April. The output price index of goods produced by the UK manufactures rose to 0.6% from 0.5%. But, total input prices fell 1.1% between March and April, compared with a fall of 0.4% between February and March.
Weekly trading range-
The pair is facing strong resistance at (23.6 fib level) 1.6865. The pair has weekly support at 1.6790 and 1.673 levels. On the up side, once the pair crosses the 1.6865 level, it can extend its leg up to 1.69 and 1.6920 levels. This week the trading pattern is fixed between 1.6790 and 1.6865 levels. An either side breakout will extend its range between 1.69-1.6920-1.673 levels.
Positional basis-
After taking the support at the 50-day SMA, the pair moved to the resistance level at 1.6875. In yesterday's trading session, the pair made a high at 1.6865 levels. In Aisa's trading session, the pair is taking support at 1.6825 levels. On the down side, if the pair breaks the 1.6825, it will fall to 1.68 and 1.6783 and 1.673 levels. On the upside, if the pair crosses the 1.6875 levels, it will shoot up to 1.69, 1.6920 and 1.6940 levels.
Intraday-
In Asia's trading session the pair is trading at 1.6838 levels holding the 50-hour SMA and 38.2 fib level at 1.683 levels. The hourly momentum oscillators favor pullback side up to 1.6865, 1.6875, 1.6894 and 1.6901 levels. On the down side, if the pair breaks the 1.682 it will fall to 1.68, 1.6785 and 1.673 levels. A strong rally will take place only above 1.6903 levels.
Recommendations- 1.6835.
Buy at cmp with targets at 1.6850, 1.6865, 1.6875 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 21, 2014 . Thanks for your support on Technical analysis of GBP/USD for May 21, 2014
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