5 May 2014; GBPUSD
After a long break for holiday, it looks that GU made a climb and break out of its 1.680, then 1.6850 resistance line.
Accordingly, since Mar 24, GU has made the climb. The peak was reach just last Thursday. Using a Fib retracement on a daily chart the new resistance line is at 1.720. Given a large gap between now at 1.6875 to 1.7200, the intermediate resistance is at 1.692, then the psychological line at 1.700, then 1.7070.
What support the upward movement is that BoE monetary policy and the support for capital flow that is in favour for a long. Economic data releases has shown that UK is doing better. PMI releases tomorrow at 1630hrs SGT is a critical to continue supporting the upward trend.
On the technicals, GU has been largely overbought. There has no indicator that show a up. But neither does it show a down as CCI(34) on the daily moves side and no over bought.
As such, potential if GU goes down, it will be a good buy at 1.6854 (1hour EMA200) and at 1.6830 (daily EMA21). Or to buy or breakout at above 1.694. Take small profits and beware of resistance at 1.6875, 1.692 and 1.700.
Support is at the buying entry at 1.6854, 1.6830 and 1.6744 (Fib retracement and daily EMA55).
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