GBP/USD
The UK estimated GDP for the first quarter in terms of volume increased by 0.85%. The UK's economic growth continued its strong pace in Q1 of 2014. The cable looks fundamentally strong, but technicals look very poor. Traders favor buying sterling on the dip, but do not favor the euro.
The cable is facing strong resistance at 1.6875 levels. The pair looks weak until it trades above 1.6875, if it crosses it, it will jump to 1.6920 levels. This is a crucial level in the near term. The RSI in the daily chart favors selling on the rise strategy. The level of 1.665 and 1.66 are open targets until trades below 1.6921 levels. The key support level has been placed at 1.683. Selling pressure will increase if the pair breaks the 1.683 level. Traders can enter shorts below 1.683 for initial targets at 1.68, 1.675 and 1.6732 levels. A day close below 1.673, it will drift up to 1.666 and 1.66 levels.
In Asia's trading session, the pair is trading at 1.6858. The looks weak only below 1.6850 for an hourly purpose. Until it breaks 1.6850, it will fly up to 1.6875, 1.6880, 1.69 and 1.6921. If the pair breaks the 1.6850 level, it will fall to 1.683 and 1.68. Below 1.68, selling pressure will become stronger for 1.6785, 1.673, 1.6713 and 1.666 levels. If the pair closes below the 1.683 levels, the bears will tighten their grip more. Please wait for an upmove and start selling.
The given levels are from MT5
The material has been provided by InstaForex Company - www.instaforex.com
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