Published: Tue, 19 May 2009 13:22:00 +0200

Forex: GBP/USD reaches 1.5515, fresh 2009 high, back below 1.5500

FXstreet (Barcelona) - After recovering from 1.5115 Monday's low and rise around 400 pips in the first two days of the week, Cable has reached a new 2009 high at 1.5515 in the European session. Currently the pair is trading back below 1.5500 level, close to 1.5475/85, 1.00% above today's opening price.

Anna Coulling, Analyst at Master The Markets, suggest to buy on any pullback in Cable: "Having facetiously suggested that yesterday we would see an up bar, purely based on the previous sequence of up and down days cable duly delivered with a wide spread up bar breaking above the 9 day moving average and closing well above 1.53 adding a bullish tone to the sideways movement of the last couple of weeks. This has continued in this morning's trading and we should now see a significant move to the upside in the medium term presenting excellent buying opportunities for trend trading in cable over the next few weeks"

On the other hand, the Swiss e Trade Strategy Team affirms that USD is under pressure on new signs of economic recovery: "Cable is again in an upward thrust in early European trading, with the current price at 1.5460 testing the long-term resistance zone. This hurdle is hard to overcome and, considering the heavily overbought situation now, we expect downward corrections today, to the support level around 1.5350."

By Fxstreet.com

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