Forex Technical Update
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.
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.
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