GBP/USD rose again for the session on Thursday as the risk on trade got a boost by the successful bond auctions in Europe. The pair is highly sensitive to global risk and especially European risk as the two economies are so intertwined. With this in mind, we aren't surprised to see this pair rise for the session.

The 1.55 level just above is a massive support line from before, and as a result we will more than likely see a bit of a selloff on Friday as many traders will not want to go home long in this environment. The breaking of the 1.55 level on a daily close would be very bullish, but this area is the start of a lot of resistance from what we can tell. We are looking to sell weakness at this point.

GBP/USD

GBP/USD Forecast January 20, 2012, Technical Analysis

GBP/USD Pivot Points (Time Frame: 1 Day)

 Name  S1  S2  S3  Pivot  R1  R2  R3

 Classic
1.5440
1.5384
1.5352
1.5472
1.5528
1.5559
1.5616

 Fibonacci
1.5438
1.5417
1.5384
1.5472
1.5505
1.5526
1.5559

 Camarilla
1.5488
1.5480
1.5472
1.5472
1.5505
1.5513
1.5521

 Woodie's
1.5452
1.5390
-
1.5478
1.5540
1.5566
-

 DeMark's
1.5544
-
-
-
1.5456
-
-