Will the Pound keep its uptrend?

on May 27, 2015
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The Pound versus the Dollar has kept a very well-defined uptrend with some days retracing to the downside, but overall the bullish trend is still in place. On the daily chart of the GBP/USD, courtesy of the Forex Broker ActivTrades http://www.activtrades.co.uk/, we can see a blue line which is the 200 period exponential moving average around the 1.5459 level. While the price of the GBP/USD was going up, it made some interesting moves around the 200 EMA.

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When the price first visits the 200 EMA, it bounces to the downside and make a low around the 1.5085 level. From there, the price goes back up to its 200 EMA and consolidates there for a couple of days to break higher and make a peak around the 1.5816 level. Price then comes back down to the 200 EMA and completes a “Breakout-and-Pullback Pattern”. From the 200 EMA, price bounces to the upside and it seems to be holding on to its bullish uptrend.

The 1.5816 level could become a resistance for the pair, but a breakout above that zone keeps the uptrend in place.

Alexander Londono – Analyst contributor at ActivTrades.

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