February 12, 2014 – GBP/USD (daily chart) has risen once again to maintain its bullish bias after having rebounded from a significant decline that began two weeks ago. That decline brought the currency pair down from its multi-year high of 1.6667 in late January to a low of 1.6250 in early February, breaking down below a key uptrend line in the process. Dipping below key support around 1.6300, the pair has subsequently made a sharp rebound to climb back above its 50-day moving average and, most recently, above the 1.6500 resistance level. Two opposing technical scenarios could play out for the pair. If upside momentum fails and is unable to breach the noted 1.6667 multi-year high, a bearish head-and-shoulders pattern could form, which may push the pair back down towards the noted 1.6300 support level and then potentially down towards a 1.5900-area target. Alternatively, in the event of a breakout above the 1.6667 high, the pair will have confirmed an uptrend continuation, with an immediate upside target at 1.6750 and then potentially up towards 1.7000 to extend the bullish trend. 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. View All Post By James Chen Forex News Today: Daily Trading News share Read Next Australian unemployment hits 6% – AUD/USD loses 0.90 Yohay Elam 9 years February 12, 2014 - GBP/USD (daily chart) has risen once again to maintain its bullish bias after having rebounded from a significant decline that began two weeks ago. That decline brought the currency pair down from its multi-year high of 1.6667 in late January to a low of 1.6250 in early February, breaking down below a key uptrend line in the process. Dipping below key support around 1.6300, the pair has subsequently made a sharp rebound to climb back above its 50-day moving average and, most recently, above the 1.6500 resistance level. Two opposing technical scenarios could play out for… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
