Can GBPUSD Break Higher?

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The British pound traded lower this past week against the US dollar, but it was later seen finding bids around the 1.4600 area. It looks like stabilizing around the mentioned area and might gain bids in the short term. There is hardly any major release lined up in the UK and the US today, which means there could be ranging moves during the next couple sessions. Shortly, the Chinese Trade Balance, which is a balance between exports and imports of total goods and services will be released by the General Administration of Customs of the People’s Republic of China. It might cause some moves in the FX market in the near term.

There was a major bullish trend line formed on the hourly chart of the GBPUSD pair, which was taken out by buyers during the Asian session. Currently, the pair is testing the 23.6% fib retracement level of the last drop from the 1.4844 high to 1.4588 low. A break above the same might open the doors for more upsides in the short term. Initial resistance cane be seen around the 38.2% fib level, followed by the 50% fib level. There are a few bearish signs to note from the charts, including the fact that the GBPUSD pair is below the 100 and 200 hourly simple moving averages. And, the hourly RSI is also below the 50 level.

GBPUSD 04.13.2015

If the GBPUSD pair moves lower from the current levels, then a retest of the 1.4600 support area is possible moving ahead.

Overall, one might consider buying dips in the GBPUSD pair as long as it is above the 1.4600 support area.

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