The GBPUSD didn’t make significant movement yesterday and has been moving in a sideways condition in the last two days. The bias is neutral in nearest term. Similar to the EUR/USD which is in a counter trend phase after found resistance at 1.4000 area, the GBP/USD also in a corrective phase after the failure to move clearly above 1.6300 and now testing the lower line of the bullish channel as you can see on my daily chart below. A clear break below the bullish channel and daily close below 1.6130 would continue the bearish correction testing 1.5950 key support area this week, but note that overall price still trapped between 1.5950 – 1.6300. Immediate resistance is seen around 1.6241 (yesterday’s high). A clear break above that area would change the intraday bias to bullish retesting 1.6300. Although I still prefer a major bullish scenario, only a clear break above 1.6300 would reactivate my bullish mode.
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