GBP/USD Climbs Above 1.5600

• After testing 200-day SMA support on Tuesday and Wednesday, better than expected UK retail sales and mixed economic data from the US lifted GBP above 1.5600 level against USD for the first time since June 19.
• On Friday, GBPUSD currency pair is trading near 1.5630, almost unchanged from Thursday’s closing level, ahead of housing data (building permits and housing starts) and preliminary reading of the University of Michigan’s Consumer Sentiment Index from the US later on Friday. Also read: Important Economic Events
• The pair touched, on Thursday, touched an intraday high of 1.5651 and finally settled at 1.5635. This 1.5630 – 1.5650 zone represents 50% Fibonacci Retracement Level of the pair’s entire downfall from 2009 highs to 2010 lows and could continue to provide immediate resistance for the currency pair.
• Should the pair manage to strengthen above the 50% retracement level, the pair seems to continue appreciating towards June 2013 highs (1.5720 – 1.5750 zone) with intermediate minor resistance near 1.5680 area.
• On the downside, 1.5590 – 1.5570 zone may now provide immediate support for the currency pair and could possible act as an important pivot for the pair’s move in the upcoming week.

Should the pair fail to hold 1.5590 – 1.5570 support on weekly closing basis, the pair could be vulnerable to a corrective move towards 1.5420 – 1.5400 support zone marked by 200-day SMA and 61.8% Fibonacci Retracement Level of 1.5750 – 1.4812 downfall. 1.5500 psychological level might provide intermediate minor support on the downside

Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/