27, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The pound is expected to trade neutral, with some negative angle as the market expects the report of Mervyn King, the head of EB.

In the UK, the final estimate of GDP for the 4th quarter is planning for a release, although they rarely deviate from the original (now -0.3% q/q).

Two weeks ago, GBP found a support at 1.4900, and this is the third "test" level on a weekly run, as the true level of support. 1.5350 is an area which had previously acted as support, and to a lesser degree of resistance.
For much of the last 2 years 1.5300 was the "magic" level, the pair often fought on it. Now it has become a resistance, and the trading area starts around 1.5250.