GBPUSD Defies Gravity, Looks to Trade Higher Moving Ahead
Aayush Jindal
Key Highlights
British Pound traded higher Intraday against the US Dollar, and broke a critical resistance area.
GBPUSD is facing a major resistance on the upside around 1.5550 where sellers might struggle in the near term.
In New Zealand, the Business NZ PMI released by the Business NZ posted a minor decrease from the previous revised reading of 51.7 to 51.5 in April 2015.
GBPUSD – Technical AnalysisThe GBPUSD pair after setting a short-term top moved lower and fell back towards an important broken bearish trend line on the hourly chart, which acted as a support to the pair. The highlighted trend line was coinciding with the 38.2% Fib retracement level of the last wave from the 1.5256 low to 1.5553 high. In short, the pair found support around the mentioned Fib level and currently moving back higher.However, there is a major resistance on the upside around the last swing high of 1.5550 where buyers might continue to struggle. A break above the stated resistance area could clear the way for a move towards 1.5600.On the downside, there are many support areas, starting with the broken trend line, 50% Fib retracement level of the 100 hourly simple moving average. So, buyers have many reasons to take the pair higher moving ahead.New Zealand Business PMIEarlier during the Asian session, the Business NZ PMI, which presents business conditions in New Zealand was released by the Business NZ. The outcome was a bit on the lower side, as the Business NZ PMI fell to 51.5 in April 2015. The last reading was also revised down to 51.7 from 51.7. Moreover, the Food Price Index report was also released, which stated that the food prices rose 0.4 percent in May 2015.Commenting on the same, the prices manager Chris Pike, stated that “Higher food prices in May were influenced by seasonally higher prices for fresh vegetables”.Moreover, the vegetable prices increased by 5.7% in May 2015, and on the other hand, fruit prices declined by around 6.4%. Overall, the report was not encouraging enough to lift the New Zealand Dollar against its counterparts, as it is already reeling after the recent RBNZ rate cut.
However, there is a major resistance on the upside around the last swing high of 1.5550 where buyers might continue to struggle. A break above the stated resistance area could clear the way for a move towards 1.5600.On the downside, there are many support areas, starting with the broken trend line, 50% Fib retracement level of the 100 hourly simple moving average. So, buyers have many reasons to take the pair higher moving ahead.New Zealand Business PMIEarlier during the Asian session, the Business NZ PMI, which presents business conditions in New Zealand was released by the Business NZ. The outcome was a bit on the lower side, as the Business NZ PMI fell to 51.5 in April 2015. The last reading was also revised down to 51.7 from 51.7. Moreover, the Food Price Index report was also released, which stated that the food prices rose 0.4 percent in May 2015.Commenting on the same, the prices manager Chris Pike, stated that “Higher food prices in May were influenced by seasonally higher prices for fresh vegetables”.Moreover, the vegetable prices increased by 5.7% in May 2015, and on the other hand, fruit prices declined by around 6.4%. Overall, the report was not encouraging enough to lift the New Zealand Dollar against its counterparts, as it is already reeling after the recent RBNZ rate cut.
However, there is a major resistance on the upside around the last swing high of 1.5550 where buyers might continue to struggle. A break above the stated resistance area could clear the way for a move towards 1.5600.On the downside, there are many support areas, starting with the broken trend line, 50% Fib retracement level of the 100 hourly simple moving average. So, buyers have many reasons to take the pair higher moving ahead.New Zealand Business PMIEarlier during the Asian session, the Business NZ PMI, which presents business conditions in New Zealand was released by the Business NZ. The outcome was a bit on the lower side, as the Business NZ PMI fell to 51.5 in April 2015. The last reading was also revised down to 51.7 from 51.7. Moreover, the Food Price Index report was also released, which stated that the food prices rose 0.4 percent in May 2015.Commenting on the same, the prices manager Chris Pike, stated that “Higher food prices in May were influenced by seasonally higher prices for fresh vegetables”.Moreover, the vegetable prices increased by 5.7% in May 2015, and on the other hand, fruit prices declined by around 6.4%. Overall, the report was not encouraging enough to lift the New Zealand Dollar against its counterparts, as it is already reeling after the recent RBNZ rate cut.