GBP/USD – 23 March 2011
Yesterday cable finally broke and had a solid close above the 1.63 level we mentioned in our earlier analysis. With the previous 4 days being strongly bullish a pull back would be expected. The 1.63 level now sits as support for this market and any retrace back to this area could be seen as a potential buying opportunity to rejoining the current uptrend.
A strong price action set up would need to be seen before entering any long trades.
The 4hr chart supports the daily chart and could prove to give a defined entry should a pull back to this area occur. We can see the market has been respecting the trend line we’ve drawn starting from the end of January. We’ve seen a number of ‘bounces’ of this line from above and below. The trend line is crossing the 1.63 level and should any pull back to this area occur our bullish bias would be further confirmed.