Can GBPUSD Break Higher?

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The British pound managed to hold the ground against the US dollar, but buyers look like struggling to clear an important resistance area. If they continue to struggle, then there is a chance of a move lower in the near term. The US dollar weakened a bit recently, but it does not mean it is out of woods just yet. In the UK, the CBI Distributive Trades Survey will be released by the Confederation of British Industry. The market is expecting a minor improvement this time. So, we need to see how it shapes and whether the GBPUSD pair can break higher in the near term or not.

There is a monster bearish trend line formed on the hourly chart of the GBPUSD pair, which is acting as a hurdle for the pair on the upside. The most important point is that the pair settled below the 100 hour moving average, which might enforce selling pressure on the pair. However, there is also a fact that the 200 hourly MA is holding the downside in the near term. So, if the pair moves higher from the current levels, then initial hurdle is around the 100 MA, which is sitting around the 38.2% fib retracement level of the last leg from the 1.5479 high to 1.4342 low. Any further upside might see the highlighted trend line.

GBPUSD 02.23.2015

If the GBPUSD pair moves lower from here, then it might find support around the 200 hour MA. A break below the same might ignite losses in the short term.

Overall, one might consider selling around the stated trend line in the GBPUSD pair as long as it is trading below the same.

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