Great British Pound (GBP) Technical Major Currencies (2010-06-14)

The rising wedge pattern continues to affect the pair last week as it manages to achieve negative pressure on the pair, pushing the pair towards 1.4340 after breaching its support. Meanwhile, we notice that 38.2% Fibonacci correction will descend from 1.5497 towards 1.4229, where the pair has resisted pushing upwards in two technical attempts. The pair stabilized above SMA 100, where strong positive signs are appearing through the stochastic, alongside signs of a bullish technical pattern appearing on the four hour chart above. These factors combined make us expect a bullish trend this week; targeting mainly 1.5000 and requiring first the breach and building a base above 1.4705 - mentioned 38.2% Fibonacci -. Keep in mind that the breach of 1.4500 will make the expected ascending scenario to fail.

The trading range for this week is among the key support at 1.4240 and the key resistance at 1.5000.

The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.

Previous Report

Support1.45701.45001.44401.43951.4340Resistance1.47051.47951.48601.49301.4960RecommendationBased on the charts and explanations above our opinion is buying the pair with the breach of 1.4660 targeting 1.4860 and stop loss below 1.4570, might be appropriate.