26 Jul 2013
GBP/USD posts bullish reversal candle after Wednesday’s pullback; 1.5508 next target
FXstreet.com (Barcelona) - The British Pound / US Dollar cross (GBPUSD) rallied hard after initially trading lower in reaction to in-line British GDP and a higher British services index. Rumors of a dovish Fed policy statement next week got credit for the greenback’s renewed weakness.
GBP/USD reversed course higher on technical and rumors of continued Fed dovishness
While the tendency is to assign credit for all currency moves to fundamental or economic data, the move higher off of intra-session lows in the GBP/USD Thursday appears to have started in part as a result of a successful test of “abc” correction support at 1.52733 at shortly after 10:00 GMT.
That being noted, the very strong move higher late Thursday was attributed by most market watchers to rumors of another dovish stance to be taken by the US Federal Reserve at next week’s FOMC meeting.
GBP/USD technical outlook
Technicians remain bullish of the GBP/USD cross in the short-term with targets for this up move at 1.5508. Tim Thielen, CMT and author of The Sea Change Report, is calling for a continued move up to that resistance level, but is then calling for a turn back to the downside with an eventual target below 1.4800. Shorter-term resistance comes in at Thursday’s high of 1.5433 and is followed by the 1.5508 projected resistance. Support for GBP/USD comes in at Wednesday’s close at 1.5313 and is followed by Thursday’s low at 1.5262.
GBP/USD reversed course higher on technical and rumors of continued Fed dovishness
While the tendency is to assign credit for all currency moves to fundamental or economic data, the move higher off of intra-session lows in the GBP/USD Thursday appears to have started in part as a result of a successful test of “abc” correction support at 1.52733 at shortly after 10:00 GMT.
That being noted, the very strong move higher late Thursday was attributed by most market watchers to rumors of another dovish stance to be taken by the US Federal Reserve at next week’s FOMC meeting.
GBP/USD technical outlook
Technicians remain bullish of the GBP/USD cross in the short-term with targets for this up move at 1.5508. Tim Thielen, CMT and author of The Sea Change Report, is calling for a continued move up to that resistance level, but is then calling for a turn back to the downside with an eventual target below 1.4800. Shorter-term resistance comes in at Thursday’s high of 1.5433 and is followed by the 1.5508 projected resistance. Support for GBP/USD comes in at Wednesday’s close at 1.5313 and is followed by Thursday’s low at 1.5262.