GBP/USD Rallied

I admit that I expected GBP/USD to bounce off the resistance at 1.5310 but the pair defied my expectations, broke above the resistance and spent the whole day rallying and breaking above every resistance level on its way with ease. I would not be surprised if the rally continues next week until the GBP/USD reaches the previous high at 1.5508. Should the pair manage to break above that resistance level and form a new high I think can safely conclude that the bearish trend has ended for now and a reversal has been confirmed.

GBP/USD Is Moving Up

GBP/USD fell sharply after the FOMC rate decision announcement but after that move to the downside the pair consolidated for a while and eventually found some support at 1.5250. It bounced off that support and now it is most likely headed for the resistance at 1.5310 which coincided with (MA)89 on the one-hour filter chart. That said, as you can see from the screenshot above, that (MA)89 has served as a persistent resistance for quite a while now, so it is quite possible that the pair will not be able to break above 1.5310 and will move to the downside again.

Interesting Forex Facts Part 3

11. Before the advent of the Internet, in the mid 1980s, there was another form of electronic Forex trading, which was developed by Reuters and was called (yes, you guessed it) “Reuters Dealing”.  By today’s standards that system would be terribly outdated, as it was essentially a closed-network chat system, but back then it was considered to be pretty sophisticated.

12. The GBP/USD currency pair is called “cable” because before the fibre-optic technology and satellite communication the London and New York stock exchanges were connected through a giant steel cable under the Atlantic Ocean. 

13. More than $5.3 trillion are traded on the foreign exchange market every day.

14. The Forex trading daily volume is 53 times larger than the New York stock exchange.

15. The USD is the most popular currency and it is involved in 87% of all trades.