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Home » Daily Technical Reports » GBP/USD Today Technical 29/04/2016

GBP/USD Today Technical 29/04/2016

GBP/USD advanced on Thursday and broke above the downside resistance line taken from the peak of the 24th of August. Therefore, I maintain my view that the short-term outlook is positive. I would expect the pair to continue trading higher and aim for a test of the 1.4680 (R1) line marked by the highs of 4th of February. A break of that level is needed to trigger larger bullish advances and perhaps challenge the 1.4785 (R2) zone. Looking at our near-term indicators, both detect accelerating upside speed and support the case for further advances. Zooming out to the daily chart, I see that Cable broke above the 80-day exponential moving average, which provided a reliable resistance to the price action on the 17th and 31st of March, as well as towards the end of last week. The pair also broke above the aforementioned downside resistance line, which has shifted the medium-term trend to the upside as well.

POUND 29

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