Forex Technical Update
GBP/USD 4H Chart 7/12/2012 6:25AM EDT
The flow to the USD and JPY got a boost after the FOMC minutes, and accelerated over the 7/12 Asian-European sessions. The GBP/USD was held below the 1.56 level and fell to the 1.5450 level before the 7/12 US session. The 4H chart shows that this fall breaks below a consolidation pattern as well as establish new lows in July.
The RSI in the 4H chart held below 60 after tagging 30, and is now falling below 40, a sign of bearish momentum building up.
The next key level to monitor is the July low at 1.5280-1.53.
It should also be noted that below this, the 1.5240, 2012-low is the lower end of a sideways market since August 2010.
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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