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GBPUSD : Testing 50 day SMA, Looking Bullish

GBPUSD today broke below the key support at 1.6216 extending its losses and found the next support at 1.6169. However the 100 day SMA moving towards the 200 day SMA signaling an uptrend continuation. On the stochastic oscillator also the %K line is below the %D line showing that the pair will continue to rise. The losses came after an official data showed that U.K. producer price index and Retail price index missed the economist’s expectation. Although the Consumer Price Inflation index came in line with the economist’s expectations.

On the 4 hour chart, the pair seems like trading within an ascending triangle and should break out from the resistance at 1.6273. However currently seems like the 50 day SMA is acting as resistance for the pair therefore it will only hold gains above the resistance at 1.6273 once it is hold above the 50 day SMA.