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12.06.201506:14 Forex Analysis & Reviews: Technical analysis of GBP/USD for June 12, 2015

Long-term review

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US retail sales data pushed the British pound lower. At yesterday's session, the cable stopped its 3-day winning streak. The cable took over 20Dsma support , managed to close above the lost moving averages. This shows that pound bulls got strong. Even though the US delivered stronger data, the USD is unable to skyrocket.

We remain bullish about the cable. Our yesterday's forecast was not met. The same levels we use today on the buying side. Buying looms above 1.5535 with targets at 1.5550, 1.5600,1.5630, and 1.5690. Support is found at 1.5500 and 1.5480. The key support level is found at 1.5440. In the daily chart, the bullish pattern is likely to extend the higher targets above 1.6000. It is too early to recommend that, but readers should keep this in mind. This view will be erased in case the price closes below 1.5170. The 20Wsma has been providing enough support for bulls. We prefer using a dip around 1.5200 to open fresh buying positions.

To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com

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