31.03.201405:35 Forex Analysis & Reviews: Technical analysis of GBP/USD for March 31, 2014

The pair is in an uptrend from the level of 1.6465 and facing stiff resistance at the level of 1.66. This resistance level is the highest point on March 17, and for 61.8 Fib level in the H4 chart. Today's traders eye the BOE Governor Carney speech and the Fed's Chairwoman Jannet Yellen speech. Volatility is expected during this session. We do not recommend going long at the current levels. Bulls are back on track only above the level of 1.666 for targets at 1.6718 and 1.6786 immediately. In the H4 chart, RSI favors bears. We expect selling on higher levels is the best strategy in the near term. On the down side, the level of 1.6626, 1.6585, and 1.655 is the immediate targets.

S1 1.6585 R1 1.6666

S2 1.65 R2 1.6718

S3 1.6465 R3 1.6786

OVERALL:

In the weekly chart, the RSI is travelling downwards. The pair has been in a down trend from the level of 1.6823. It's a lower high and lower low forming in the last 2-week trend in the weekly chart, which was a complete bear view. This view will break once the pair starts trading above the 1.666 level. This pair is trading near the descending trendline. If the pair breaks and trades above the upper purple trading line, it gives a clear breakout for the targets at 1.68 and 1.70 levels. On the down side, the pair has a support at 1.6465. The more bearish review will generate once the pair breaks this level. Below this level, 1.6252, 1.6, and 1.5722 are the next targets.

On the upside, once the pair brakes the 1.66 level, it will face resistance at 1.6741, 1.6786, and 1.6823.

SELL WITH SL at 1.666 and TARGETS at 1.66, 1.6585, AND 1.655.