19.05.201406:15 Forex Analysis & Reviews: Forecast of GBP/USD for May 19, 2014

Long-term review

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The cable has been in a corrective phase for the last weeks. It has taken support at the lower band of the trading range. This week the pair opened on a bullish note. The last week's low will be very crucial in coming trading sessions. It has support at the 50.0 fib level and 50-day SMA in the daily chart. On the down side, once the pair breaks the 1.673 levels, it will drift up to 1.666 levels immediately, and later the 1.655 levels are an open downside target. On the upside, 1.6870 and 1.69 are pullback levels.

Weekly key support level is at 1.670 on a closing basis. Resistance is at 1.69 levels.

Weekly trading activity is set between 1.673 and 1.688.

In Asia's trading session, the pair is trading at 1.6823 levels. It opened on a bullish note, expecting to face strong resistance zone at 1.6831-1.6840 levels. Safe traders can buy only above 1.6840 levels for 1.69 levels. On the down side, the pair has strong support at 1.6810 levels. In case of a break below this, the pair looks weak and selling pressure will take the pair towards the 1.6732 and 1.6720 levels.

Intraday-

The pair is trying to cross the previous high at 1.6831 levels. The hourly trading pattern has been fixed between 1.6831-1.6810 levels. Once it breaks the downside support, it will fall to 1.6795, 1.6785, 1.6775, and 1.673 levels; on the upside, if the pair trades above the 1.6832, it will fly up to 1.6862, 1.6874, 1.6890 and 1.6906 levels.

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