Forex Technical Update

Previous: GBP/USD Pushes Above 1.61 for New High in 2012; 1.6160 is Key Resistance (4/20)



The GBP/USD has been trading up for 5 straight trading days and 1 doji on the 4/23 session. As the market gears up for the 4/24 US trading sessi0on, the pair continue to trade up, now testing/cracking the 10/31/2011 resistance pivot at 1.6164. Will this resistance hold?


The short-term momentum is suggesting that the market so far intends to break above 1.6164. In the near-term, the 1.62 handle can provide resistance for a throwback, but a confirmed break opens up the next resistance pivots at 1.6450 and then near 1.66.

However, if the market fails to break above 1.6164 in the 4/24 US session, or it cracks it but is pushed back immediately, we should monitor the 1.6080 pivot. A break below 1.6080 reflects respect of the key resistance pivot. In Oct-Nov. 2011, when the GBP/USD was pushed lower from the 1.6164 level, it went a tad below 1.59. If we use the analogy from that consolidation period, our bearish outlook for now, should be limited to 1.59, with 1.60 also as an important psychological support.

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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.