GbpUsd Technical View, August 13
Cable formed an outside down bar on the weekly charts slipping briefly under the 2.0200 support. The week started with the pair moving lower and what seemed a reversal on Wednesday with a strong move up it was negated with an equal move on Thursday that brought the pair back close to the 2.0200 support line.
Friday’s price action formed a doji on the daily charts after the pair once again bounced from the 2.0150/60 area, with that in mind and with the overall trend still bullish we will be looking after possible resistance levels. Although the area above the current trading price is not very clear we can see the 2.0460 double top standing out as the closest bullish target and resistance level, if cable has enough strength to test last weeks high and get above it sights will be set on the YTD high at 2.0650 which is the main target for longs.
Conversely a continuation of the south move will get us below the 2.0200 and the pair will have to clear 2.0150 to get close to April 18th high of 2.0133 which was the yearly high for a few months this year; below 2.0133 we have only the 2.0000 round number as probably one of the most tempting bearish target one can spot on the charts.
Resistance Levels
* 2.0700- round number
* 2.0650 – July 24th High
* 2.0360 – July 11high
Support Levels
* 2.0200 – Round number
* 2.0133 – April 18th High
* 2.0060/70 – April 25th High
By Bogdan, FxInstructor
