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 Forecast March 6, 2012, Technical Analysis
GBP/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3