Forex Technical Update
GBP/USD Chart 1H 6/5/2012 11:23AM EDT
The GBP/USD continues to trade within the range immediately established after the NFP release on 6/1. The range is between the 1.5280 support and 1.5440 resistance. Since then, the market traded in a triangle, and broke below that in the 6/5 Asian-European session.
As we get into the 6/5 US session, the market has pulled back from 1.5325 and is now near the 1.54 level, which represents the apex of the triangle. Holding below 1.54 can give a bearish tilt, especially with the 1H RSI reading staying below 60.
Still, the bearish outlook will be limited to 1.5280 for now. The GBP/USD is trading at a a multi-year support around 1.53, so the market might need some fundamental pivot before being able to push below 1.5280.
A Push above 1.54 opens up 1.5440, still within consolidation mode. Above 1.5450 with the 1H RSI above 60 and preferably tagging 70, the market is likely at least in a short-term recovery from May's decline in the GBP/USD. The bullish outlook should be limited to 1.56 handle.
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.
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