Forex Technical Update

Previous: GBP/USD Stalls at the 1.56 Handle with Possible Double Top (6/13)

GBP/USD Chart 4H 6/14/2012 7:46 AM EDT

GBP/USD

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

GBP/USD

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.

In the topping scenario, we are looking at a bearish breakout against the rising trendline. In the short-term this opens up 1.5440, 1.54 level. Below that we can open up the 1.5284-1.53 low.

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.

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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.