GBPUSD strong upside intact

May 19, 2016 10:18

Fears of Brexit have diminished at least for the time being as latest polls suggest that pro EU option leads by 10 % (55 % vs 45 %). Additionally very good data for Average Earnings Index and Claimant Count Change has spurred additional bullish momentum where the GBPUSD reached 1.4660 resistance.

Technically we can see rising MACD, and confluence within first POC that is 1.4600 zone (pennant breakout , 23.6, round number ) and traders should watch for a possible bounce at the zone.

POC2 is 1.4520-35 zone where we see a confluence - DPP, L3, 50. Below is a strong support 1.4500 with 61.8 and EMA89. If we see another rejection targets should be 1.4660 and only on 1h momentum break or 4h candle close above H4 cam pivot - 1.4725 we could see 1.4830.

1.4500 should stay firm else the pair is back in a range with a downtrend potential.

Learn about pound dollar historical relationship.

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