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2013-06-12-GBPUSD

June 12, 2013 – GBP/USD (daily chart) has continued its upside march above previous 1.5600 resistance, continuing the sharp bullish recovery that began from the double-bottom low near 1.5000 in late May. This recent bullishness has now recovered more than 50% of the dramatic losses the pair experienced from the high at the very beginning of the year (around 1.6340) down to the mid-March low (around 1.4830). Price has also reached the underside of a key uptrend line extending back to the noted mid-March 1.4830 low, and moved slightly above the 200-day moving average. Currently, GBP/USD is moving up towards the 1.5750 resistance area and the 61.8% Fibonacci retracement of the noted plunge from the beginning of the year to mid-March.   The pair could see some further upside and recovery around these resistance areas, and possibly higher, before potentially resuming its bearish stance with a turn back to the downside towards the 1.5000 handle and lower.

James Chen, CMT
Chief Technical Strategist
City Index Group

 

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