GBP/USD Testing Resistance
July 27th, 2010 Posted in GBP - Pound Sterling, Technical Analysis
The Cable continues to move higher and is flirting with a resistance level that was last touched in May.
Yesterday the GBP/USD rose as high as the resistance line of 1.5520 (R1) before falling back to close up at 1.5494. Today in early morning hours of the European trading session the price briefly breached the resistance line but failed to hold onto the gains.
Momentum appears to be behind the price move higher as the 14-day Momentum indicator is sloping higher, indicating further appreciation may be in store for the GBP/USD. The next significant resistance level comes in at 1.5820 (R2), the high from the middle of February. Support for the pair rests at the previous resistance levels of 1.5380 (S1), 1.5050 (S2), and a long term support at 1.4775 (S3).
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Tags: Forex Trading, GBPUSD, resistance level, Support Level
