GBPUSD  Forecast

The GBPUSD attempted to push higher yesterday, topped at 1.5509 but whipsawed to the downside, bottomed at 1.5344 and now struggling around 1.5400. It’s a volatile and a little bit difficult market especially for intra-day traders but from a broader outlook, it’s not difficult to see that overall bias remains strongly bearish. Trading in the end of the year is never easy as consolidation usually happen, making some false breakout/down. Note that although the major scenario is clearly more to the downside, price still unable to make a clear break below the trend line support so far. Price may slip several times below the trend line, but the trend line remains a strong support and may hold for the remaining days of 2010. Nearest bearish target is seen around 1.5300. Immediate resistance at 1.5450 – 1.5500.  I prefer to stand aside until next year, but will keep my eyes on price action around the trend line support.

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