The GBPUSD was corrected higher on Friday, topped at 1.5578 and closed at 1.5544. Overall this pair is still consolidating with the upper line of the bearish channel and the trend line support as key resistance and support area. Aggressive intra-day traders may short around the upper line of the bearish channel (around 1.5650) or long around the trend line support (around 1.5400 – 1.5370) with tight stop loss. A clear break above the bearish channel could be a serious threat to the technical bearish outlook while a clear break below the trend line support would confirm the bearish continuation scenario targeting 1.5000 this week. The bias is bullish in nearest term testing 1.5650 resistance area. Clear break above that area and violation to the bearish channel could be an early signal of a bullish reversal scenario. Immediate support at 1.5500. Break below that area could trigger further bearish pressure testing the trend line support and 1.5400 – 1.5370 key support area.
©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.