09.07.201403:41 Forex Analysis & Reviews: Intraday recommendation on GBP/USD for July 09, 2014

Long-term review

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The currency pair is weak in terms of economic data ahead for the UK. Traders keep an eye on tomorrow's monetary policy decision from the BoE. The bullish bets are decreasing as an interest rate hike could come sooner than expected. We don't expect fresh bullish fireworks. The cable is enjoying a strong bull run. It made high at the 1.7180 levels. If we get any surprise from the BoE, we can see 1.7330 levels from where it will fall. As we recommended earlier, fresh longs are only above the 1.7180/1.7167 levels.

The momentum indicator in the daily charts is showing a short-term top done at the 1.7180 levels. On the down side, it has support at 1.7054 (20-day Sma), 1.70, 1.6960 (30-day Sma) and 1.6915 (50-day Sma). For an intraday basis, the pair has resistance at 1.7145 (21-Hr Sma) above this, 1.7167, and 1.7180 levels.

Note - We recommend fresh buy only above 1.7180. Risky traders can short with sl 1.7180 target 1.7060, and cmp 1.7139

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