Recommendations: LONG positions above 1.6365 with 1.6565 & 1.6665 as next targets.
Alternative scenario: The downside breakout of 1.6365 will call for a slide to 1.6265/1.6165.
Description: The GBPUSD continued its bullish momentum last month, stability above the key support 1.6365 on a daily basis will keep the bullish momentum intact and look for 1.6565 levels ahead of 1.6665, further out will aim 1.6765 levels. On the downside ; main support comes at the 1.6365 levels , losing this level on a daily basis would weaken the current bullish run and bring consolidations for retesting 1.6265/1.2165 levels , note that we have strong support around 1.6065 , If reached, this level is likely to limit any downside move and bring rebound towards 1.6365 levels.
Trend direction: Upward
Support and resistance levels :
- 1.6765 – Overbought – Trend continuation level
- 1.6665 – Minor resistance
- 1.6465 – Minor support
- 1.6365 – Oversold – Bearish breakout level – Pivot level for Jan 2014
- 1.6265 – 1.6165 – 1.6065 – 1.5965.
- Main support comes at 1.6365 levels, buying the pair is recommended after rejection from this level on a daily basis.
- If 1.6365 fails on a daily basis, 1.6465 should limit any upside move and bring decline towards 1.6265/1.6165 levels.
- If 1.6365 fails on a daily basis, and 1.6465 is taken out, next resistance would be 1.6765…
- If 1.6765 is taken out, 1.6665 should contain any bearish correction and bring rise towards 1.6865/1.6965 levels.
- If 1.6765 is taken out, and 1.6665 failed to hold, next support would be 1.6365…