GBPUSD Technical Analysis for May 06, 2013

Last week, the GBPUSD had slight movements that failed to overcome the barrier of 1.5600 level.

Possibly GBPUSD is forming a lower high pattern to continue the climb but it is very difficult in the medium term due to the level of 1.5600, there is a very strong resistance supported by the 200 day moving average. If the GBPUSD manages to overcome the 1.5600 level, it is likely to rise to the level of 1.5680; In that level, this pair possibly will start to do sideways movements. The outlook for this week on the cable is flat, because there is strong resistance on the upside but be cautious with any economic data affecting the UK economy.

The MACD indicator is in overbought, which indicates that this pair will not jerking technical level this week. Remember that today is a holiday in the UK due to May Day.

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