GBP/USD rose after first falling on Monday. The 1.58 level acted yet again, this time as support. The pair does look fairly healthy, and the fact that the 1.58 is now acting as support instead of resistance suggests that we are going to make a real attempt at breaking above the 1.60 level. The breaking higher and above that level would be massively bullish for this pair, and would have us holding onto any long positions.

The breaking higher over the Monday highs would have us be willing to buy this pair, with the caveat of knowing the 1.60 level is resistive. However, it is at that point that we are going to place stop losses at breakeven, and let this trade at least try to breakthrough and onto larger profits. Selling isn't a thought at the moment.

GBP/USD

GBP/USD Forecast March 6, 2012, Technical Analysis

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

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
1.5694
1.5740
1.5793
1.5838
1.5892
1.5938
1.5991

 Fibonacci
1.5740
1.5777
1.5801
1.5838
1.5876
1.5900
1.5938

 Camarilla
1.5819
1.5828
1.5837
1.5838
1.5856
1.5865
1.5874

 Woodie's
-
1.5741
1.5797
1.5840
1.5896
1.5940
-

 DeMark's
-
-
1.5915
1.5850
1.5816
-
-