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GBP/USD 4H Chart 9:30AM EDT 7/2/2012

GBP/USD

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

GBP/USD

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.

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.