GBP/USD Daily Chart 10/29/2012 9:35AM EDT
Held at resistance: The GBP/USD stopped at 1.6143 on Friday (10/26), failing to clear above the consolidation pattern that has been developing since the 1.6308 high. The daily RSI remains between 40 and 60, a reflection of consolidation momentum. Price action suggests we still have some bearish bias in this consolidation against the rally from 1.6267 June 1 low to 1.6308 Sept 21 high.
Support: The very short-term support pivots to watch out for in the current bearish scenario (within the consolidation context), are 1.5975 and then 1.5913. If we clear 1.59, the 200-day SMA is a key factor to monitor, but more importantly will be the 50% retracement in the 1.5780-1.5790 area, which also includes a resistance/support pivot, and possibly near the rising trendline.
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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