Consolidation above the previously broken uptrend line goes on this week too after the pair expressed bullish breakout above consolidation range between 1.5050 and 1.5200.
The weekly candlestick came bullish for the 2nd week in a row closing at 1.5264 after the pair found strong demand at 1.5050 corresponding to the lower limit of congestion zone.The next supply zone is located around 1.5400 (previous top established on 12nd of April) where price action should be watched especially after we had daily closure above SMA depicted on the chart.Based on the deep bottom that was established during July, the cable may be targeting 1.5500 in the long term.
The congestion zone is more obvious on the 4H chart where a bullish breakout above 1.5200 took place last week.
Since then, the cable established ascending bottom 1.5150 and ascending top 1.5265 supporting the ongoing bullish bias for the pair. As long as these structures remain unbroken, the bulls would remain in control of the market.
Intraday demand zone is located around 1.5265-1.5300 which corresponds to 50% Fibonacci Level and previous top where price action should be watched for a possible BUY entry.
Fundamentally, total retail sales and wholesale index rose in the UK stronger than expected during the previous month, according to industrial data released today this also supports the bullish view.
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Performed by Michael Becker, Analytical expert InstaForex Group © 2007-2013 |
GBP/USD intraday technical levels and trading recommendations for July 24, 2013
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