22 Jul 2013
GBP/USD rocketing towards next resistance at 1.5303
FXstreet.com (Barcelona) - Fundamental and technical forces joining together to propel GBP/USD higher – continuing the short-term trend of Dollar weakness. After rallying to new short-term highs intraday and then pulling back, GBP/USD is once again pressing towards the highs.
GBP/USD riding technical and fundamentals to new short-term highs
The GBP/USD currency cross is rallying nicely Monday – likely on news of potential trouble for US-based investment banking giants and partially due to technical traders reading more upside in the future for the cross. The full ramifications for the US Dollar are still unknown, but traders appear to be speculating that trouble for the US banks might lead to more dovishness out of the Fed to keep some stability in the markets. Meanwhile, as described below, the charts appear to be favoring more upside for GBP/USD.
Tech outlook for GBP/USD is bullish short-term
Technicians say that the GBP/USD is likely destined for a continued rally all the way up to 1.5435 before major "correction resistance" is tested. There will obviously be some minor stops along the way, though. Short-term resistance for GBP/USD comes in at 1.5304 followed by the key resistance at 1.5435. The next stop above that level would be all the way up at 1.5591. Short-term resistance for GBP/USD comes in at the 7/18 intraday low at 1.5156 followed by the 7/15 pivot low of 1.5026.
GBP/USD riding technical and fundamentals to new short-term highs
The GBP/USD currency cross is rallying nicely Monday – likely on news of potential trouble for US-based investment banking giants and partially due to technical traders reading more upside in the future for the cross. The full ramifications for the US Dollar are still unknown, but traders appear to be speculating that trouble for the US banks might lead to more dovishness out of the Fed to keep some stability in the markets. Meanwhile, as described below, the charts appear to be favoring more upside for GBP/USD.
Tech outlook for GBP/USD is bullish short-term
Technicians say that the GBP/USD is likely destined for a continued rally all the way up to 1.5435 before major "correction resistance" is tested. There will obviously be some minor stops along the way, though. Short-term resistance for GBP/USD comes in at 1.5304 followed by the key resistance at 1.5435. The next stop above that level would be all the way up at 1.5591. Short-term resistance for GBP/USD comes in at the 7/18 intraday low at 1.5156 followed by the 7/15 pivot low of 1.5026.