Daily view:
The cable invalidated the reversal Head and Shoulders pattern maintaining quite strong bullish momentum to the upside.
Daily closure above 1.5719 (the highest level in August) enhanced further bullish pressure to be applied, so that the bulls could step above 1.5760 (the highest level in June).
Previous bullish swing targeted 100% Fibonacci Expansion level. This rendered the current one targeting the same level which was bypassed when the pair stepped above 1.6035 recording a daily high at 1.6170.
The pair expressed a bearish Harami daily candlestick off 1.6150, which was followed by daily closure below 1.6035 which took place on Friday. However, the cable bounced from recent lows resuming the upside momentum, having climbed back above 1.6100 as the USD weakens during the European session.
4H view:
Obvious bullish pressure has been applied during the past two weeks rendering 1.5450 a valuable ascending bottom which was established during August.
The ascending channel depicted on the chart gave bullish potential for the pair towards 1.6000 and 1.6170 where the upper limit of the channel is located.
Re-losure below 1.6040 enables the bears to initiate an early retracement move towards 1.5770 where the lower limit of the channel is located provided that the pair does not break through 1.6075. However, failure to do so will activate another bullish move towards 1.6190.
Fundamentally, Sterling rose to an eight-month high earlier this month after strong UK jobs data, but fell back slightly this week when Gross Domestic Product (GDP) figures showed year-on-year output rose by 1.3%, not the expected 1.5%. However, further rise in the GBP/USD price is expected as the USD is still getting weaker.
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Performed by Michael Becker, Analytical expert InstaForex Group © 2007-2013 |
GBP/USD intraday technical levels and trading recommendations for September 27, 2013
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