GBPUSD Technical Analysis for June 03, 2013

The GBPUSD is trying to resume the bullish trend, but strong resistances are preventing it.

The GBPUSD failed to break the resistance level at 1.5155 and now is trying to climb up to the resistance level at 1.5257, a strong resistance in the way. We should note that if the GBPUSD manages to break this resistance, it is very possible that this pair up to resistance level 1.5400. This sudden change in this pair’s overall trend is due to the formation of a double bottom pattern, which clearly indicates a trend reversal in the long term for the cable. However, we must bear in mind that this pattern can be overridden if the fundamental news in the UK, do not benefit the “weak” economy in United Kingdom and the pound still rushing. Our other hypothesis is that if the GBPUSD manages to break the support at 1.5000 psychological level in the long term, it is expected to resume bearish trend and fall to the next support level at 1.4800.

The MACD indicator is in positive territory, supporting a bullish outlook for this pair in the long term, but we must be careful.

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