Concern over the Ukrainian crisis may be cooling the market’s bullish sentiment, but Alan Collins is hoping to take advantage of this limited profit taking as he expects the pound to continue to rise against the dollar.

On Tuesday the strength of the pound increased after the release of strong UK data, signalling continued support for the currency. UK data showed a 0.2 percent rise in consumer price inflation; this was significantly lower rise than the previous month. Investors however are proceeding cautiously as they await the news from the scheduled meeting between the US, EU, Ukraine, and Russia on Thursday.

All signals look positive for GBPUSD at the moment, so Alan is targeting USD 1.6782 and then this year’s high of 1.6823. The market is at the same Marabuzo line created by the highs reached on April 8th and the 13 day moving average is attracting new buyers.

He cautions though that a dip below 1.6661 or a close below the 13 day moving average jeopardizes this trade.

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