16.04.201523:38 Forex Analysis & Reviews: Technical analysis of GBP/USD for April 17, 2015

Overview:

• The trend movement was controversial as it took place in the narrow uptrend channel. Due to the previous events, the price of the GBP/USD pair is still trading between the levels of 1.4985 and 1.4811. So, it is recommended to be careful while making deals in this area as the market showed the signs of instability around 1.4985 (the key level on April 17, 2015). Therefore, it is necessary to wait until the sideways channel is passed through. Then, the market is likely to show the signs of a bullish trend above the level of 1.4985 (we expect a breakout above this strong level). In other words, buy deals are recommended above 1.4985 with the first target at the level of 1.5023. From this point, the pair is likely to begin an ascending movement to the point at 1.5058 and further to the level of 1.5126 (it will act as a strong resistance for this week because the level of 1.5126 represents the weekly resistance 2). However, if the pair fails to pass through the level of 1.4990, the market will indicate a bearish opportunity below the strong resistance level of 1.4990 (it means a false breakout). In this regard, sell deals are recommended lower than the 1.4985 level with the first target at 1.4910. There is a possibility that the pair will turn downwards continuing the development of the bearish trend to the level 1.4847 then 1.4805.