13.05.201403:33 Forex Analysis & Reviews: GBP/USD medium-term forecast and intraday recommendations for May 13, 2014

GBP/USD
The pair has been in an uptrend from 1.6465 levels. It completed its extended legs at 1.70 levels. The weekly momentum indicators are giving the selling signs. The weekly key level was placed at 1.6832. A break below this level would ring the bells for sellers and the pair is likely to drift towards inital targets at 1.68 and 1.6763 levels. 1.666 is the key support level, below 1.6465 is an open target. The weekly momentum indicates the sell on rally.

Weekly key level- 1.6832 support, 1.70 resistance

Monthly key level- 1.666 support, 1.704 resistance

For the week of May 13-16, the upside resistance was placed at 1.3906 levels (yesterday's high). Currently, the pair is taking support at the upside breakout at the level of 1.682 (previous swing high). This is the key level for bulls to hold below, 1.6782 is the initial target later 1.6763 and 1.6722 (50 daily SMA). The bears are seen to take charge below 1.682 level. To sell on rally is the best strategy.

Intraday

The pair is trading at 1.6871, it is holding its ground at 1.682. Trading above the level 1.682 is a bullish note. The hourly momentum indicators are giving a pullback sign from the current oversold levels. We expect the pair to come down towards the support levels placed at 1.685, 1.683 and 1.682 levels, then it is seen to move to 1.69 and 1.6938 levels. As per RSI in the h4 chart, the pair is in buy on dip strategy for the next 1-2 sessions. On the up side, the crucial resistance was placed at 1.69 and on the down side the key support level placed at 1.682 and 1.6792 levels.