Forex Technical Update
GBP/USD 4H Chart 9:30AM EDT 7/2/2012
Risk-on trading on Friday following the EU Summit pushed GBP/USD sharply above a recent bearish trendline of a corrective pattern. To start this week, the market appears to be confirming this breakout, holding a throwback with support at the 1.5655 pivot. The very short-term target for this bullish continuation scenario is the 1.5780 area, representing the June high.
What if after this break above 1.5720, we get a throwback again? Looking at the 1H chart, a bullish continuation would be evident if a throwback remains above the middle of the current range between 1.5655 and 1.5720. The center of this range is around 1.5685. A hold above 1.5680 should give the market more confidence to participate in the rally toward the June high.
GBP/USD 1H Chart 9:32AM EDT 7/2/2012
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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