Technical Analysis

GBP/USD Analysis: Re-Tests 1.39 Area

Typography

Lack of fundamantal events on Monday resulted in the Pound moving sideways against the US Dollar. The pair tried to push higher during the day; however, the strong resistance of the 55– and 100-hour SMAs restricted any advances.

It is likely that the Pound tries to move past this resistance area once again in this session. A possible bullish push could be provided by the British CPI data to be released at 0930GMT.

In case this cluster is surpassed, the Pound is expected to appreciate up to the 1.40 mark where the 200-hour SMA and and the monthly PP are located. A further advance is unlikely, as the pair was unable to breach this psychological level last week.

Meanwhile, losses should be restricted by the weekly and monthly S1s near 1.37.

Author: Dukascopy Swiss FX GroupWebsite: http://www.dukascopy.com/
Dukascopy Swiss FX Group
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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