GBPUSD Technical Analysis for July 25, 2013

The GBPUSD is approaching critical levels where this could change its trend. However, the trend remains bullish.

This pair is forming a lower high pattern, below the resistance  level of 1.5378 and below the SMA 200. If the pair manages to break that level, it is expected to rise to the level of 1.5515. However, current levels could define the general trend of this pair, because the SMA 200 is a strong dynamic resistance, which could curb future increases in the cable. If the GBPUSD manages to break the support at the 1.5288 level, it’s expected to fall to the level of 1.5190. For now, it is advisable to wait for the GBPUSD break any of those levels, because this pair is in a very volatile area where the cable can take any direction. Another thing to consider is that a fractal is formed above this pattern, so we must be alert to a possible change in trend.

The MACD indicator remains in positive territory and still no signs of extreme overbought in this pair.

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