Short-term analysis of GBPUSD

Gold daily analysis
October 22, 2015
TRADING2DAY RESULTS
October 25, 2015

With a strong UK Retail sales number announced just minutes ago, GBPUSD has spiked higher from 1.5425 to 1.5510. The British pound is forming a bullish flag relative to the US dollar and is also above a long-term downward sloping trend line resistance. This indicates that there are more chances of an upward breakout and a push towards 1,56 and why not higher.

 

First we have the daily chart shown below.

GBPUSD2

GBPUSD is breaking above the green trend line resistance that connects the two previous highs. The price action of the last few days is more like a consolidation before the continuation of the previous trend which was bullish.

GBPUSD1

In the 4 hour chart above you can see how price has formed a bullish flag and how the Ichimoku cloud is providing support for the GBPUSD at the 1.54 area. A 2 hour close above 1.5510 will confirm the breakout with 1.56 as minimum target.

 

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Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.