Forex Technical Update
GBP/USD Chart 1H 6/7/2012 7:17AM EDT
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 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.
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.
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