GBP/USD : Strong volatility
--- New analysis ---
Since te beginning of October, the pair GBP/USD is very volatile but is moving without a clear trend. This is again the case lastly, the price has retraced the whole of its last bullish movement of last week. However, the exit of the range 1.6068/1.6150 from the bottom gave us a sell signal. The price is close from the upper band of the former medium term bearish channel (purple lines) who allowed a rebound of the price last week.
We advise to trade only short positions as far as 1.61 is resistance. The breakout of the psychological level at 1.60 (and so of the upper band of the channel) will give a new sell signal and should allow the price to reach the next support at 1.5950 and 1.59 in extension.
In case of return above 1.61, we will be again neutral between 1.6068 and 1.6150.
Analysis published by Bruno, the 11/05/2012 at 09h05 GMT+2
Chart of the pair GBP/USD - Timeframe 4H
Chart of the pair GBP/USD - Timeframe 1H
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