Forex Technical Update
GBP/USD Chart 1H 6/1/2012 11:26AM EDT
The GBP/USD like many USD-crosses failed to follow through with the initial risk-on pop to start the week, which followed the Spain bailout headline. The 1H chart shows a failure to reach last week's high near 1.56 before falling back into the gap that is shown in many retail broker platforms.
It was consolidating in the 6/11 Asian-European session above 1.5525, but broke below that during the US session, now testing the 1.55 handle.
An even more significant support lies around the the 1.5440 area. This is a pivot area as well as near the 200-hour SMA (which is closer to 1.5450). Also this is likely where a rising trendline will be if the market does fall further in the US session.
However, if this breaks, we open up the 1.54 psychological pivot and then the 1.5285-1.53 May/June lows.
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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