GBP/USD : Strong volatility
--- Follow up analysis ---
The pair GBP/USD has continued its bearish movement at the beginning of the week, breaking the psychological level at 1.60 (new sell signal). Currently, the price seems to have some difficulties to pursuit its movement below this level and an accumulation zone is taking place. In h1, this shows up with a triangle (black lines). We are close to the end of the pattern. On the medium term, the pair is testing again the upper band of its former bearish channel (purple lines) who has allowed a rebound of the price at the end of October.
We continue to advise short positions as far as 1.6050 is resistance. The breakout of 1.5963 will give a new sell signal and will allow the breakout of the upper band of the channel. We will be then able to target a test of the support at 1.59.
In case of return above 1.6050, we will be neutral between this level and 1.61.
Analysis published by Bruno, the 11/08/2012 at 09h30 GMT+2
Chart of the pair GBP/USD - Timeframe 4H
Chart of the pair GBP/USD - Timeframe 1H
|GBP/USD Live Chart - Timeframe : 4h|
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