13.02.201418:29 Forex Analysis & Reviews: Intraday technical levels and trading recommendations for GBP/USD for February 13, 2014

Long-term review

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From fundamental standpoint, positive news came from the Bank of England Monetary Policy Committee which expects the unemployment rate to reach 7% by the first quarter of 2014.

This accelerated the current bullish impulse towards 1.6570 then 1.6666, according to the fundamental data released yesterday.

Today, the GBP/USD bulls managed to breach the previously established descending bottom at 1.6470 then 1.6600 (previous top established on January 28). Both levels are considered intraday DEMAND for the pair now.

The nearest SUPPLY level is located at 1.6666 where a prominent top was established on January 24. It's expected to apply some bearish pressure on the pair to retrace towards 1.6500 initially.

As expected, bullish pressure was applied at retesting of the backside of the broken bearish channel depicted on the chart around 1.6250.

This pushed the pair higher again towards 1.6470,, the level which was bypassed during this week. This opened the way directly towards the next resistance level around 1.6600.

Price level of 1.6570 is now considered a prominent DEMND level to offer a valid BUY entry at retesting.

Price level of 1.6666 probably offers a valid SELL entry with SL as daily closure above 1.6700.

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