GBP/USD: Having continued to maintain its bullishness, the challenge is for the pair to retake the 1.6577 level, its Dec 2013 high. This if seen will push GBP further higher towards the 1.6614 level, representing its Aug 14 2011 high where a break will pave the way for a run at the 1.6650 level, its psych level.
On further price extension, the pair will aim at the 1.6700 level where a violation will turn attention to the 1.6743 level, its April 24 2011 high and possibly higher towards the 1.6800 level. Its daily RSI is bullish and pointing higher suggesting further strength. Conversely, support lies at the 1.6459 level where a breach will expose the 1.6404 level, its Dec 27 2013 low.
Further down, support resides at the 1.6321 level, its Dec 24 2013 low where a breach will push it further lower towards the 1.6259 level, its Oct 01 2013 high. Price cap is expected here if tested. On the whole, GBP continues to retain its medium term bullish bias.
Guest post by FX Tech Strategy
