GBPUSD  Forecast

The GBPUSD attempted to push higher yesterday, topped at 1.5769 but whipsawed to the downside, hit 1.5609 and closed at 1.5634. The bias is bearish in nearest term but note that price actually has been moving sideways this week, moving inside a rectangle formation as you can see on my hourly chart below. My overall technical bias remains to the downside and I still prefer to short on rallies but note that we need a clear break and daily close below the rectangle and 1.5600 to continue the bearish scenario still targeting 1.5520 – 1.5422 support area. Immediate resistance is seen around 1.5655 (current high). A clear break above that area could lead price to neutral zone in nearest term testing 1.5715 – 1.5769 but only a clear break and daily close above 1.5800 would stop the bearish outlook, probably turn my intraday bias to a bullish mode testing 1.5950 – 1.6000 area.

©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

.