Forex Technical Update

GBP/USD 1H Chart 7/5/2012 11:25AM EDT

GBP/USd

The GBP/USD broke below a range before the BoE meeting in anticipation of more QE. Indeed, the MPC decided to expand its asset purchase program by £50 bn to £375 bn. Following this announcement the GBP/USD accelerated this week's losses opening up last week's low and support pivot near 1.5490.

A swing projection seen in the 4H chart targets the 1.5430 area. We have a pivot zone in the 1.54-1.5430 area. Below that we open up the June low of 1.5280.

It should be noted that 1.5240/50 area is a key support pivot that has provided demand. This was support Jan.2012 ,Oct., Sept, 2011, and Sept. 2010, and is the lowest since Sept. 2010.

GBP/USD

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of rex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.