GBP USD is trading sharply higher overnight, fueled by bullish commentsfrom a Bank of England official. The BoE’s Paul Fisher said that thecentral bank’s quantitative easing program was working.
GBP USD is trading sharply higher overnight, fueled by bullish comments from a Bank of England official. The BoE’s Paul Fisher said that the central bank’s quantitative easing program was working.
Technically, the main trend turned up on the daily chart when the GBP USD broke through the last swing top at 1.6120. Earlier in the week a closing price reversal bottom at 1.5706 started a strong short-covering rally which has since triggered the change in trend.
Based on the main range of 1.6741 to 1.5706, traders should watch for a retracement to 1.6223 to 1.6346. A down trending Gann angle also comes in at 1.6261 today. This forms a resistance cluster at 1.6223 to 1.6261.
Support is being provided by uptrending Gann angles at 1.5866 and 1.5786.
Long traders should watch for a possible reaction to the down side if 1.6223 to 1.6261 is tested.