GBP/USD: The Price is Unlikely to Go Above the Level of 1.4625. Technical Analysis of 29/04/2016.

GBP/USD: The Price is Unlikely to Go Above the Level of 1.4625. Technical Analysis of 29/04/2016.

29 April 2016, 15:41
Roberto Jacobs
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GBP/USD: The Price is Unlikely to Go Above the Level of 1.4625. Technical Analysis of 29/04/2016.

Review and dynamics
The pair GBP/USD has been growing for the third consecutive week. Earlier, the pair went up in the channel on the daily chart consolidating above support level of 1.4335 (Fibonacci 23.6%).

However, the pair may not exceed resistance level of 1.4625 (Fibonacci 38.2% to the decline from 1.5230 since mid-December 2015) and 1.4590 (ЕМА144 on the daily chart). Further rise can be restricted by weak British macro-economic data of this week and prospects of exit from the EU. Recent terrorist attacks in Belgium and problems of migration in Eurozone increase the number of people in the UK who wants to exit from the EU.

Our opinion
On the daily and weekly charts the indicators OsMA and Stochastic recommend to open long positions. However, on the hourly and 4-hour charts the indicators are reversing towards the short positions.

Today, the pair may rebound from the levels of 1.4625 and 1.4590 go further down due to profit taking at the end of the trading week. The nearest target in this case will be the level of 1.4335 (Fibonacci 23.6%) and ЕМА50 on the daily chart.

In case of development of the downward movement, the pair will go to the lows of April at the level of отметок 1.4100 (lower line of the ascending channel on the daily chart) and 1.4045 or probably to 1.3860 (lows of the year).

As an alternative scenario the pair may rise up to 1.4725 (ЕМА200 on the daily chart), 1.4800 and 1.4860 (Fibonacci 50%).

Support levels: 1.4590, 1.4335, 1.4240, 1.4185, 1.4100 and 1.4045.
Resistance levels: 1.4625, 1.4725, 1.4800 and 1.4860.

Trading tips
Sell Stop: 1.4570. Stop-Loss: 1.4630. Take-Profit: 1.4500, 1.4400, 1.4335, 1.4185, 1.4100 and 1.4045.
Buy Stop: 1.4670. Stop-Loss: 1.4610. Take-Profit: 1.4725, 1.4800 and 1.4860.

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The rise can stop at the current levels

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Rebound from the level of 1.4590

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