Forex Trading: GBP/USD Breaks Above Formation – Pushed Higher

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Overnight and into the start of the US session, the GBP/USD has broken the top side of the pennant formation (1.5050.) The pair is now holding above the 100 Hour & 200 Hour MA’s, against the the 38.2% retracement level near 1.5176. The Fibonacci is calculated from the high on Feb 17th, 2010 (1.5814) to the low on March 1, 2010 (1.4782.)

The pair will need to break thru the 38.2% level to signal a move higher, with a next target level of 1.5298, which is the 50% retracement level of the same move. If the pair fails to move higher and the bias returns to the downside, the pair will have the 100 Hour MA at 1.5030 as a next level of support, below that 1.4888 will be the next key level.

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