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GBP/USD Respecting a Price Bottom ahead of the BoE Inflation Report

The GBP/USD has put in a price bottom last week after it rallied above the 1.5270 level. Some might even consider a break above 1.52 a key moment for the GBP/USD. In the 4H chart, we can also see that price has pushed above the 200-, 100-, and 50-period SMAs while the RSI has pushed above 70. These are all signs that the market is turning bullish.

GBP/USD 4H Chart 2/11
(click to enlarge)

After reaching 1.5350 last week, cable stalled then fell after the US NFP report, which was strong and boosted the USD across the board. However, traders kept the pound-dollar above 1.52. This shows respect to the price bottom, and the bounce off the 200-period SMA also suggests a bullish outlook. Today, price broke above 1.5270, which further suggests the bulls are in control in the short-term. 

The 1.5350 level will be threatened, and a break opens up the 1.55 handle, which is a previous support pivot. Note in the daily chart, that a break above 1.5350 would also break above a falling trendline coming down from July, 2014's high of 1.7190. Price is already cracking this line as shown in the daily chart, but perhaps more clarity will encourage more bulls to put on a rally. 

We also see that above 1.55, 1.56 is another key level, being the support/resistance area.

GBP/USD Daily Chart 2/11
(click to enlarge)