Home Forex Analysis: GBP/USD Establishes New 8-Month High on Sharp
Forex News Today: Daily Trading News

Forex Analysis: GBP/USD Establishes New 8-Month High on Sharp

2013-09-18-GBPUSD

September 18, 2013 – GBP/USD (daily chart) has confirmed a continuation of its sharp bullish trajectory today by establishing a new 8-month high just short of major resistance at the 1.6000 psychological level. This steep bullish trend has been in place since the early-July double-bottom low around 1.4800, which accelerated sharply after the late August pullback and rebound off the 1.5400 support area. Since that rebound, the pair has risen in a near-vertical fashion, breaking out above key prior resistance levels at 1.5600, 1.5750 and 1.5825, to make its current approach of the major 1.6000 handle.

While another pullback should soon be due, the bullish trend remains strong, especially on any significant breakout above 1.6000. In the event of this breakout, the primary upside resistance targets reside around the 1.6150 intermediate level and then the key 1.6300 resistance area. Strong downside support on any pullback now resides around the 1.5750-1.5825 zone.

James Chen, CMT
Chief Technical Strategist
City Index Group

 

Forex trading involves a substantial risk of loss and is not suitable for all investors. This information is being provided only for general market commentary and does not constitute investment trading advice. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision.

James Chen

James Chen

James Chen is Chief Technical Strategist for City Index Group. He is also a Chartered Market Technician. He is the author of the books: "Essentials of Foreign Exchange Trading" (John Wiley & Sons, 2009) and "Essentials of Technical Analysis for Financial Markets" (John Wiley & Sons, 2010). Mr. Chen writes currency analysis, leads forex trading seminars and has appeared in numerous major financial media outlets, including CNBC, Bloomberg TV, Forbes, Reuters, Dow Jones, and the Associated Press.