The pair is in a long up trend and has recently broken a trendline to indicate that a new trend could possible be developing. Of course there is always a resistance level here or a support level there that can stop the progress. This is no different today as the upwards movement on the Pound Dollar will be challenged at the 1.6470 level. If the pair can break through that level we can expect this current upward trend to continue.
4 hr chart *Note Click on the chart to learn about a trading system.
So as that level is approaching rapidly watch how the pair reacts to it. We could definately see a pull back at that level since the pair has been moving this last week. However sometimes a trend that is moving fast like this will blow right through it and if that is the case we should expect to see the pair continue the upward movement, to a possible target of 1.6700.
The main reason for this move is because of all the negative news coming out on the Dollar lately and that is really what is driving the prices here. I even read today where there is talk of a dollar collapse. I am not saying that will happen because I don’t believe it will. However I am saying that to say that this upward trend on the Gbp/Usd could continue for quite some time.
There is a round of the pound and other currencies at the street.com
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