14.04.201405:00 Forex Analysis & Reviews: Weekly analysis of GBP/USD for April 14-17, 2014

Long-term review

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The economies of Canada and the U.K. are making progress. In Canada, the central bank on April 16 is projected to keep its benchmark interest rate unchanged and update its economic forecast amid signs the recovery is picking up. The same day, figures will probably show the jobless rate in the U.K. has dropped.

Weekly view- April 14-17

GBP/USD is trading in a tight range between 1.6823-1.6718 levels. The pair made a double top and keeps on correcting. In Asia's trading session the pair is trading at 1.6726 levels. The pair is taking support at 1.6718 level. Once it breaks this level, the pair will be completely in bear hands. As we recommended earlier, sell on rally up to 1.6823, the same we are recommending this week, but fresh short positions will generate only below the 1.6718 level for 1.6684 and 1.6675 levels immediately and 1.6660 and 1.66 later. In the H4 chart, RSI is favoring sell side. On the up side, the pair is facing resistance at 1.6786 and 1.6823 levels.

In case of a day close below the 1.6718 levels, the bear move will be towards 1.66 and 1.6554 levels. Fresh up move is only above the 1.6823 levels for 1.69-1.6910 levels.

For intraday perspective, we expect the pair will pull back towards 1.6750 and max 1.6786. On higher levels, traders again can enter short positions with sl 1.6823 on a closing basis.

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