Weekly bias on the GBP/USD is neutral for now in the medium term picture as the trend on 4hours and daily seems to contradict each other’s for now. However the long term picture in the pair remains on the upside as price was rejected and bounced off from the 55 EMA on the daily charts with zigzag showing a potential end of a medium term bearish run. The bulls were also able to push and close price above the 21 EMA at the end of Friday’s trading session.
A break of resistance 1.64146 might see more demand to 1.68123 (February 17, 2014 high). If the Meeting Minutes and Employment Statistics of the Great Britain economy give strength to the single currency, we might see price penetrate through this strong resistance and more rise to 1.7000 psychological zones could be seen.
However, a break of 1.65676 support might bring a decline of the pair to 1.64705 (61.8% Fibonacci retracement) from 1.62515 to 1.68213. We should watch out for a reversal or bearish continuation signal in this important zone.
Key economic indicators to watch out for in the coming week are Claimant Count Change, MPC Asset Purchase Facility Votes, MPC Official Bank Rate Votes, Unemployment Rate, FOMC Economic Projections, FOMC Statement and FOMC Press Conference which are all scheduled at March 19, 2014.