GBP/USD Forecast: more gains ahead

06.05.2014 16:50:21

Another sign of strong growth in the UK boosted Pound against the greenback to a fresh multiyear high of 1.6952: the headline of Business Activity Index recorded 58.7 in April, up from March’s 57.6 and marking the sharpest increase in activity of 2014. 

Nearing again the key 1.7000 figure, the 4 hours chart shows a strong upward momentum coming fro technical readings, now accelerating higher in positive territory; price stands well above a bullish 20 SMA that stands a few pips above a daily ascendant trend line coming from 1.6548 today around 1.6870, all of which supports further gains ahead, with a break above 1.6960 immediate resistance triggering a quick run towards mentioned 1.7000, while a break above this last exposes 1.7040, August 2009 monthly high. 

Former high around 1.6920 stands as immediate short term support, followed later by mentioned trend line at 1.6870: chances of a test of this last are quite limited for today, yet if reached, buyers are expected to surge and push price back towards the 1.6900/10 area.