Forex Technical Update

Previous: GBP/USD Attacking Wedge Support with Strong Price Action (4/15)



The GBP/USD was buoyed by Bank of England's meeting minutes, which brought increased attention to inflation. Sterling's strength was also seen in the EUR/GBP, which fell below its 2012 low. The GBP/USD pushed above the 1.60 handle, and is attacking the 2012 high at 1.6066. Resistance in the 4/18 US trading session begins in the 1.6050-1.6066 area.

The daily chart shows a market that is trading sideways. Above 1.6066, they next key resistance area is between 1.6150 and 1.6162. The market would also be testing a projected wedge resistance if the market heads there in the next few sessions. The last time the market was in this area we in October- November 2011, and the market fell toward 1.59 during that consolidation period.

If the market breaks above 1.6162, the next key resistance  area is 1.64-1.6450.

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Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes and IBTrade will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.