GBPUSD Technical Analysis for May 08, 2013

The GBPUSD has found strong resistance at the psychological level of 1.56, slowing its upward trend in the medium term. ¿Will this pair take up strength to continue in the bullish road or will begin a new bearish road?

Just like that as I had said in previous articles, the GBPUSD quite possibly, would find strong resistance at 1.5600 and now, the cable is in a consolidation, trying to define the trend for the medium term. There is a strong support in the 1.5400 psychological level and if the GBPUSD breaks this support, it is likely to fall to next support at the 1.5200 level. For the rest of the week, I do not expect strong movements in this pair but the MACD is moving into negative territory, which could indicate that the GBPUSD will perform movements in the medium term bearish.

Our bearish outlook will be invalidated if the GBPUSD breakout makes a bullish candlestick at the 1.5600 level where it could visit the 200 day moving average at 1.5678 level in the short term.

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