GBPUSD – Bulls eye 1.6410
GBPUSD is appeared to be in a multiyear triangle formation between 1.7000 and 1.4200. Corrective uptrend started from 1.5230 (Dec’11 low) is still in force. A break above 1.6410 would retest the 1.6620/1.6750 resistance before turning lower. A reversal below 1.6035/1.5910 refocuses on 1.5780/1.5490 ahead of the key swing low at 1.5230. A break above 1.6750 however targets 1.6900/1.7040.
The pair has broken the Apr’11 resistance line and upside focus is now on 1.6280/1.6300. A move above could test the trendline resistance around 1.6410. Immediate term support is at 1.6210. A break below would focus on the 1.6120/ 1.6075 support which is likely to hold in the near term ahead of 1.6035 (watch the daily trend line support). A reversal below however dampens bulls and aims for 1.5910 initially.