FX Monthly (Apr ’17)
GBP/USD is now pressuring critical resistance at the 1.2775 high of December 2016 and the 1.2805/10 Fibonacci retracements. Rising momentum studies anticipate further gains in the coming months, with a further break above congestion around 1.3000 opening up the 1.3235, (50%) Fibonacci retracement.
Support is raised to congestion around 1.2500 and extends to further congestion around 1.2200. This area is expected to underpin any immediate pullbacks, as the bullish signal on the Tension Indicator develops and investors move towards a bullish stance.
Critical support remains at 1.2000.
A close beneath here, not seen, would negate higher levels, and turn investors bearish once again. Historic support at the 1.1880 low of May 1985 would then attract.
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