FX.co ★ GBP/USD rebounds above 1.50 - daily strategy for July 04, 2013

Yesterday the British pound stopped weekly pivot point, then from there started its fall to the current level of 1.5055. In the afternoon European session the monetary policy was unveiled remaining whith no changes, but the thing caused the decline was the "dovish" policy statement that collapsed all-day Wednesday gains. However, observing the chart, we see that this pair is below 1.5086 first weekly support. If the GBP/USD closes the week below this level, it is expected to fall deeper the level of 1.4968. On the other hand, a close above the weekly support, 1.5086 will be a good opportunity to buy, waiting for an upward movement of the pair to 1.5283 level. In our yesterday analysis we figured out a drop of the pair because the Momentum indicator was below the MCAD divergence line.

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