GBPUSD Technical Analysis Video Update – For 18th October 2012
- The GBPUSD has continued its high momentum upside move, as cable shorts continue to cover positions and fresh longs enter the market, amid moderately improved sentiment.
- GBP/USD is trading at 1.6150 +0.0038 with a +0.24% daily gain.
- The resistance confluence area highlighted on both daily and 4 hour charts is comprised of the 61.8% Fibonacci retrace and a 3rd touch of the descending trend line. The daily floor trader pivot point (R2 line) also was also aligned with this level.
- The pound to dollar rate has rallied since breaking above the 1.6000 area “inside day” last week. Upside momentum has increased this week with little in the way of a retrace found on GBPUSD so far.
- The September 2012 high is a potential upside resistance level if todays high can be taken out. Potential tech support can be seen around 1.6130, 1.6085 and 1.6000.
- Related markets have likewise seen strong upside “risk on” moves. S&P 500 Futures +0.53%, UK FTSE 100 +0.69% and the EUR/USD is trading at 1.3122 +0.52%. The USDX has continued its downside move after breaking under the lower trend line form the bearish flag pattern we highlighted at the weekend update and again yesterday.
- See the GBPUSD Technical analysis video below for further information.