By: Colin Jessup
The GBP/USD had a great week last week against the Yankee currency the Greenback, climbing some 300 pips from the beginning of the week. Today we had a continuation candle print off of the Support zone of 1.6107, possibly indicating that the British currency aims to go higher. With the Swiss Trade Balance Report happening within 2 hours of writing this article, and the British ONS releasing its report on Public Net Borrowing an hour and a half later, the Sterling could receive the shot needed to breach last week's high and send this pair into another 300+ pip technical vacuum above 1.6161. Resistance on the way up will come from the levels at 1.6141, 1.6165 and 1.6200 with 1.6316 being the biggest hurdle as the Monthly R2 intersects with an unconfirmed trend-line at this level. To the downside we see support at 1.6108, 1.6080 and 1.6050 before hitting the Weekly Pivot at 1.6031. A word of caution to look for a pullback to the Weekly Pivot at 1.60300 which is entirely possible, even probable before higher prices are reached, if at all.
Happy Trading!