GBPUSD Technical Analysis for July 29, 2013

The GBPUSD remains very strong on a bullish trend, but eventually the situation could change in this pair. Now this pair is in very critical levels.

The cable continues forming a lower high pattern, below the resistance level of 1.5387. If the pair manages to break that level, it is expected to rise to the level of 1.5515. The situation of this pair in the current bullish trend is critical, because the current price is very close to the 200 day moving average. We should remember that the SMA 200 may act as a dynamic resistance or support, as appropriate. If the GBPUSD makes a bearish rebound at current levels, would be expected to fall back to the support at 1.5288 level. Some argue that the cable could find a very strong resistance at current levels, because the SMA 200 has been a very strong barrier in this pair, to curb potential increases in the long term.

On the other hand, if the pair manages to consolidate above the 200 day moving average, quite possibly this pair is heading into a very strong bullish trend in the long term and very profitable for swing and position traders. The MACD indicator remains in positive territory, which keeps alive our bullish outlook for the GBPUSD.

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