08.05.201404:45 Forex Analysis & Reviews: Technical analysis of GBP/USD for May 08, 2014

Long-term review

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Traders eye today's economic event - the BoE will announce its core interest rate. The BoE is expected to leave unchanged its monetary policy in May at 0.5%.

The pair has been trading in an uptrend from 1.6826 levels. In Asia's trading session the pair is trading at 1.6954 levels. The pair is in a sell on rally mode. Maximally it can stretch to 1.70-1.7036 levels. The RSI in the daily chart is preparing for a steep fall in the price. The major trend reversal will take place below 1.6820 levels. As of now, the pair made a double bottom at 1.6951 levels. Once it breaks below this, the pair will take immediate support at 1.6930 and 1.6920 levels.

On an intraday basis, we expect the pair will move up towards 1.6970 and 1.6980. Sellers can wait for an upmove and short at higher levels at 1.6980-1.7936 levels. Sellers will mint money in this pair for the next couple of trading days. Sell on rally is the best option for bears. Buying zone is 1.6950-1.6930.

Recommendations- 1.6955.

Intraday- Buy at 1.6950-1.6930 with sl 1.6923 for targets at 1.6970, 1.6980 and 1.70.

Sell below 1.6920 for targets 1.6890 and 1.6853.

Positional - sell on rally.

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