GBP/USD Limit Buy at 1.6610

The pair extended gains since the BOE’s rate decision as it followed an increment of £25 billion to its asset purchase program.

Short covering, renewed risk appetite, and the Bank of England expanding its asset purchase program by only £25 billion rather than the £50 billion some had expected, has supported the Sterling in the near term.

Ahead, no major economic news will be released where traders will monitor equity markets for further guidance. The Dow 10,120 will be a key level to watch.

Looking at the 4hour chart, GBP/USD rose to a 1.6844 high from 1.6614 Friday close.

Although the pair could edge higher from here, a correction is possible before renewed buying interest resumes. UK fundamentals remain mixed and caution is for Sterling Bulls is warranted.

Bias is bullish in the near term, although a neutral stance is preferred for longer term moves.

From current levels 1.6800, the pair finds resistance at 1.6844, followed by 1.6920 and the psychological 1.7000.

With renewed downward pressure, the pair finds initial support from current levels at 1.6700.

Following this level, GBP/USD will encounter support at 1.6646 and 1.6510.

Trading levels in play:

Limit Buy @ 1.6610 Targets: T1 1.6640 – T2 1.7000 Risk 1.6548.
* After 20 pips profit move stop to entry, take profit at will. Comments will follow if outlook changes.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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