GBP/USD Forecast: pointing to test 1.7000

22.04.2014 14:00:30

Pound trades higher this Tuesday, as investors slowly shake off the long weekend hangover. Stocks edged lower in Asia, while European ones present a mild positive tone and US futures struggle around yesterdays’ close, affected by some mild risk aversion coming from Ukraine crisis. So far the conflict is not enough to affect currencies trends, yet hangs like a Damocles’ sword above the head of traders. 

Technically, the GBP/USD maintains the bullish tone seen on previous updates, with the 4 hours chart showing indicators picking up momentum above their midlines, and current candle above a flat 20 SMA. Trading barely 20 pips below the year’s high of 1.6841, a price acceleration above this level should see price advancing in a quick spike towards 1.6870 immediate resistance as per being November 2009 monthly high. Once above the path is pretty clear up to the 1.7000 figure, with an intermediate resistance at 1.6920.

Buyers will likely surge on retracements down to 1.6770/80 area first intraday support, followed later by 1.6745. This last hardly seen broken in the days to come, unless panic selling takes control over all markets.