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The GBP/USD broke its upward trend line on a 30 minute time frame. The pair has pierced the Bollinger band which means that the volatility for the pair is high. The piercing of the Bollinger band does have a significant importance when this takes place at an important level of support or resistance because this could reverse or pause the current trend.

The price is also trading sharply below the 50day (shown in green) and 100 day (shown in yellow) moving average, which means that the bears are in control of the price.

The CCI indicator is showing an early sign of reversal in terms of negative divergence in relation to the price action. The RSI indicator is also trading near the oversold territory which mean that the upward move could be on the card.

Resistance Zone

1.6873-1.6715 Major

Support Zone

1.6614-1.6591 Minor

 

1.6454-1.6421 Major

currency overview 18 Feb 2014

Source http://www.fx-insights.com/ and Reuters.com

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