GBP/USD: Technical Outlook

GBPUSD disturbed previous three weekly upward marches last week as couple of better-than-expected US economic indicators fuelled speculations that Federal Reserve will taper its monthly asst purchase program in near future, market even ignored the FOMC release last week which flashed no signals regarding the tapering.

On Friday, weaker than expected Nonfarm Payrolls weakened the US Dollar, resulting the pair to cross 50% Fibonacci Retracement Level of its recent downfall from 1.5750 to 1.4812.

This week, the pair once again started gaining momentum ahead of important economic indicators and releases which signifies strengthening of GBP.

The pair is currently trading near 1.5320, a successful run above 50% Fibonacci retracement level and capped by immediate resistances zone of 1.5310-1.5330 (including 50-day SMA and 100-day SMA).

The break of 1.5330 may lead the pair towards immediate resistance of 1.5360, breaking which 1.5400 can be the next level to watch.

If the pair sustains a breakout above 1.5400, it is vulnerable to test 1.5460 level.

On the downside, 1.5280 – 1.5275 becomes the immediate support levels (including 50% Fibonacci Retracement Level), breaking which it is expected to test 1.5225 support level.

If the pair continues to trade below 1.5225, it is expected to test 1.5185 support level.

Upcoming week contains many important releases from Britain including Services PMI on Monday, GDP estimate on Tuesday, Bank of England inflation report on Wednesday and Trade Balance on Friday. On Wednesday, BoE is scheduled to release its first forward guidance on monetary policy which could shed some lights on future monetary actions by BoE. Traders are advised to observe the events which could clear the medium term trend of GBPUSD.

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