FXStreet (Barcelona) - Chief Analyst Valeria Bednarik comments of yesterday's GBP/USD rally up to 1.6810 supported by early UK data showing a nice improvement in the employment sector, as unemployment fell to the lowest level in more than five years.
“The pair however remained unable to extend beyond 1.6820 price zone, where Tuesday high converges with a daily descendant trend line coming from this year high establishing the immediate resistance level for today.”
“The hourly chart shows indicators turning lower still in positive territory, while price develops above a strongly bullish 20 SMA."
“In the 4 hours chart price stands above its 200 EMA, anyway flat and not offering directional clues, while indicator aim higher around their midlines, still not confirming some stronger advance.”
“An advance above afore mentioned resistance is required to confirm a new leg higher up to 1.6860 in the short term, followed later by critical 1.6920.”