Forex Technical Update

Previous: GBP/USD at New High for the Week; 1.56 is Barrier Ahead of FOMC Minutes (7/11)

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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.