GBPUSD – Monthly Forecast Dec 2013

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Recommendations: LONG positions around 1.6200 with 1.6500 & 1.6650 as next target.
Alternative scenario:The downside breakout of  1.6071 will call for a slide to 1.5850/750.
Description:The GBPUSD maintained a strong bullish momentum last month , topped at the 1.6383 levels, at this point , strong resistance could be seen around 1.6380/1.6440 levels , If seen , a dip towards 1.6200/1.6071 levels is suggested before resuming the bullish move above 1.6440 , above 1.6440 would open 1.6615/1.6745 levels.On the downside, main support at 1.6071, sustained trading below this level would open 1.5850/1.5700 levels, a clear break below 1.5853  will have large bearish implication towards 1.5200 levels.

Support and resistance levels (Monthly) : 1.3500 , 1.4200 , 1.4813 ,1.5228, 1.5853 , 1.6252 , 1.6380 , 1.6440 , 1.6617 ,1.6745, 1.7000

Trend direction :Upward

Oversold level : 1.6071/1.6200 – buy after rejection on daily/weekly basis.

Bearish breakout level : 1.6071 – short below 1.6071 on daily /weekly basis.

Overbought level : 1.6500/1.6650 – short after rejection on daily/weekly basis.

Bullish breakout level : 1.6650 – buy above 1.6650 on daily/weekly basis.

In the long term picture, the clear break above 1.6070 – Feb 2010 high – printed support at the 1.4228 levels , so as long as 1.4228 holds , the pair is heading towards the 1.7000 ahead of 1.8000 levels , 1.4228/1.4813 are supposed to provide strong demand in the long term , only losing the 1.4228 will invalid the bullish view and it will have large bearish implication towards 1.3500 levels and possible lower !

 

MARKET DATA

UPCOMING ECONOMIC EVENTS

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