The UK's economy was backed by the recent economic data. Yesterday the manufacturing production fueled the economy to change its gear to the prominent recovery mode. Yesterday's data showed manufacturing rose to 0.4% in April. This is a good sign for the second quarter. As we discussed earlier, traders are willing to buy the pound on a dip. But the pound pushed to the lower levels against the dollar.
The cable has been making lower highs from the last four weeks. Currently, the pair is holding 1.6690 support level, if it breaks below 1.666(21 weeks EMA), it will be the support level. The real problem for bulls will come when the cable breaks the 1.666 level as it can extend its fall up to 1.6465 levels. The short-term traders can short below 1.666 for 1.6465 targets in the short term.
In yesterday's session, the cable broke and closed below the 50day SMA. In today's session, the cable opened higher in a bearish mode. Until the pair breaches the 1.6757 levels, it is not recommended to buy. Currently, it is trading at 1.6749 levels. For the near term, selling on the rally is preferable until the cable breaches the 1.6845 levels. On the downside 1.666 is an open target, below 1.6620 is a new target.
For intraday, traders can buy above 1.6757 targets 1.6767 1.6773 , 1.6780 and 1.6826. Safe trades can buy above 1.6770. Sell with sl 1.6767 targets 1.6735, 1.6725 and 1.67 levels.
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 June 11, 2014 . Thanks for your support on Technical analysis of GBP/USD for June 11, 2014
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