Forex Technical Update
GBP/USD Daily Chart 9/9/2012 11:01PM EDT
Rally After NFP: The GBP/USD pair has maintained a bullish mode since the June 1 low at 1.5265. The rally has been choppy, but it accelerated high after Friday's (9/7) poor USD Non-Farm Payroll, which actually weighed on the US Dollar across the board. The GBP/USD was able to push above the 1.60. The RSI in the daily chart kissed 70, showing some nascent bullish momentum, though the overall momentum during 2012 has been range-bound.
Resistance Pivots: If the market clears 1.60, what are some resistance pivots ahead? In the daily chart we see one in the near-term at 1.6062. This was the high on April 2 and a support pivot during the May 9 session. More importantly, we see a resistance pivot at 1.6165 in the weekly chart set at the high of Oct.31, 2011. Above that another significant resistance pivot is seen at 1.63 handle - 1.6305, the high on April 30, 2012.
Support Pivot: As we start the week, the pair seems to have trouble clearing 1.60. The previous resistance pivot at 1.5910-1.59 handle can be seen as a possible support for a correction, as it has been used as support and resistance a couple of times since 2011. Below that a more significant support pivot can be see near 1.5750. The bullish scenario has downside risk toward this support pivot, which is near the 200-day SMA, and probably near the rising channel support seen in the daily chart, if price is to slide. Below 1.5750, the bullish outlook may already have become invalid.
GBP/USD Weeky Chart 9/9/2012 10:07PM EDT
Fan Yang CMT is a trader, educator and a Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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