The GBP/USD pair continues to bounce around the 1.58 level, and on Tuesday saw a selloff to continue the back and forth action. The weekly chart has a shooting star from two weeks ago, and a hammer from last week. This suggests that perhaps we will find ourselves grinding away in this area, and this makes the pair difficult to trade for anything more than a scalp or short-term trade. The 1.59 level continues to offer resistance and a lid on prices, while the 1.57 level is supportive. It is based upon this that we expect the market to bounce between 1.59 and 1.57 in the near-term, and will trade it for scalps when bouncing off of these levels. Once we get a breakout in either direction - we can then assess the situation for longer-term trades.
GBP/USD Forecast February 22, 2012, Technical Analysis
GBP/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3