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2013-10-25-GBPUSD

October 25, 2013 – GBP/USD (daily chart) has stalled for the past week in a tight, low-volatility consolidation just below major resistance at 1.6300. The 1.6300 level is an exceptionally strong resistance area, as it has been tested and held firmly on at least three occasions in the past year and a half. The current consolidation pattern underneath this resistance occurs within the context of a long and steep uptrend that has been in place since July’s re-test of the 1.4800 support area. Despite having a major resistance barrier immediately above, most technical indications are still pointing to the upside. If the pair is able to reach and breach the 1.6300 level, further upside price objectives reside at the important 1.6500 and 1.6750 levels. To the downside, any breakdown of the current steep uptrend should meet strong support once again around the key 1.6000 technical and psychological level.

James Chen, CMT
Chief Technical Strategist
City Index Group

 

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