Forex Technical Update
The GBP/USD bounced off the support area around 1.58, and has been trading just under 1.5950 in the 4/11 European and US trading sessions. The 4H chart shows that during US trading, the market has stalled near a recent range resistance, although it did reach beyond the previous high slightly. The GBP/USD is ranging roughly between 1.5810 and 1.5940.
1.5940-1.5950 area holds as resistance and GBP/USD pushes below 1.5880, we have a chance to retest the 1.58 area again. There are support factors from 1.5770 up to 1.5810. A break below 1.5770 can open up some short-term targets to 1.57 (pivot and 78.6% retracement), then 1.5650 (support pivot seen in daily chart back in Feb.) and the 1.56 March-low.
Looking at the daily chart, you can also see that this bearish scenario would be a break below a rising trendline. If the market holds under 1.58, and the 1.56 pivot breached, we open up to lower support pivots near 1.5450 then 1.5240.
Ability to stay above 1.59, and push above 1.5950 can open up 1.60 (1.5995 pivot), then the 2012-high near 1.6060. Upside risk continues to 1.61, then 1.6160 before GBP/USD strength is challenged by the key resistance area established in Oct-Nov 2011.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for 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 and IBTrade 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.