Forex Technical Update

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GBP/USD Chart 1H 6/7/2012 7:17AM EDT

GBP/USD

The GBP/USD has pushed above 1.55 ahead of the BoE meeting, but failed to hold above in the hour preceding the risk event. The hourly candle shows a complete reversal of the previous hourly candle, suggesting the market's tentativeness and anticipation of what the BoE has to announce at 7:00AM EDT as well as what Bernanke has in stall for us at 10:00AM EDT.

After the BoE interest rate meeting, which left the benchmark rate unchanged at 0.5%, and did not expand QE, the Sterling firmed. GBP/USD pushed above a 1.5528 resistance pivot and has cracked 1.5550. Still there is tentativeness from the USD-side.

The next key level is the 1.60 handle. Above that 1.6040 is a key pivot (support from a previous intra-week consolidation).

EUR/GBP 1H Chart 6/7/2012 7:20AM EDT

EUR/GBP

The EUR/GBP stopped its rally in its track. The 1H chart shows that the momentum is still bearish, especially if the RSI pushes back below 40 after failing to climb above 60. A swing projection targets the 0.8035-0.8040 area.

If there is a pullback, and the market holds below 0.81, that would be further confirmation that bears now took over this market heading in the 6/7 US session.

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Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis