Forex Technical Update

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GBP/USD 1H Chart 9/21/2012 7:10AM EDT

GBP/USD 9/21/2012 1H chart

Attacking 1.63: The previous GBP/USD noted topping action and a couple of support pivots/targets – 1.6165 and 1.6065, the latter being the aggressive target coincident with a rising trendline that goes back to July. 1.6165 was a support/resistance pivot and the GBP/USD only made it to this level before pushing to new highs for the week. It is now attacking the 1.63, 2012-high, cracking it as we get ready for the 9/21 US session.

Central pivot: Note in the 1H chart the market’s dynamic around the 1.6233 area, a  common pivot in the middle of this week’s price action. It was tested as resistance during the 19th and a near-term bear swing followed. It was also tested in the European session as support after the market broke above, and provided a bounce to the 1.63 area.

At this moment, the GBP/USD market is focused on extending the rally, unless we see a push below 1.6230 in 9/21 US trading which would suggest further consolidation, refocusing on the 1.6165 level.

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

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