April 23, 2014 – GBP/USD (daily chart) is currently trading just off its four-year high of 1.6840 that was established late last week. From the beginning of the current bullish trend in July of 2013 around the 1.4800 double-bottom low, the currency pair has risen by over 13% in only nine months. Throughout the course of this strong bullish trend, the pair has made only relatively minor dips, displaying a remarkably sharp upward trajectory. This trajectory is highlighted by the fact that price action has consistently traded and recovered well above both its rising 200-day and 50-day moving averages.
Currently consolidating very close to last week’s long-term high, which exceeded February’s 1.6821 high by just around 20 points, GBP/USD is on track to continue its bullish trend after another potential pullback. Short-term support on this potential pullback resides around the 1.6650 level, where it pulled back to the 50-day moving average early last week. To the upside, a continuation of the sharp uptrend should look next to target the 1.7000 level, last reached in August of 2009.
James Chen, CMT
Chief Technical Strategist
City Index Group
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