Forex Technical Update
GBP/USD Chart 4H 6/14/2012 7:46 AM EDT
The GBP/USD is at the crossroad. The 4H chart shows that there is a rising support trendline, and a flat resistance at 1.56. Meanwhile the RSI is around neutral zone (50). The question now is which way will it breakout to.
GBP/USD Chart 1H 6/14/2012 7:44 AM EDT
The 1H chart shows the market bouncing off the 200-hour SMA after cracking the rising trendline and falling briefly below the 1.55 level. Now, as the market pushes back is is having trouble at the 1.5550 level. Failure to push and hold above this level in the US session suggests that there is topping especially if we can push back below 1.55.
On the other hand, a push above 1.5550 in the US session suggests a test of the 1.56 level again. A break to the upside has a near-term pivot at 1.5635 to look out for before the next pivot near 1.5730.
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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