12.05.201405:51 Forex Analysis & Reviews: Technical analysis of GBP/USD for May 12, 2014

Long-term review

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During this week, trader's will eye on Wednesday's economic data: unemployment rate, BoE Governor Carney speaks and inflation report. Technically the pair gave a break down indication on Friday's session. The journey to down side is paused by hourly momentum indicators. The pair is in an oversold condition. We expect the pair will shift its upwards journey towards 1.6921.

On the down side, the pair has strong support at 1.6832 and 1.682 levels.The major panic will start only below 1.682 for 1.6763, 1.6720 and 1.666 levels. The RSI in the daily chart indicates sell on the rally. If a day closes below the 1.6720 level, the real problem will start for bulls.

Intraday-

In Asia's trading session, the pair opened its trading at opened low strategy. We expect the pair to move upwards from the current levels towards 1.6870 initially, once crosses, it will fly up to 1.6890 and 1.69. On the downside, 1.6826, 1.6793, 1.678 are the strong supports.

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