Forex Technical Update

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GBP/USD Daily Chart 8/28/2012 8:25AM EDT


The GBP/USD is finding some support so far from a rising trendline that has been holding August price action so far, seen in the 4H chart. The previous update noted support around the 1.5775 level. A more recent pivot was at 1.5765. These levels (also previously broken ascending triangle resistance) were cracked, with the GBP/USD touching 1.5750 before bouncing back to test the 1.58 handle heading into the 8/28 US session.

It was also noted that if the RSI holds above 40 and pushes above 60, momentum is likely to reflect bullish continuation with focus first back to the 1.59/1.5910 area. This bullish continuation scenario should first see the market clear the 1.5820 pivot level.

Bearish Breakout Scenario:

If the market holds below the 1.5820 pivot, and falls back below 1.5750, it suggests that the GBP/USD is in further corrective decline, exposing the 1.56 handle where price is likely going to meet the rising channel support seen in the daily chart.

GBP/USD day Chart 8/28/2012 8:30AM 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.

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 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.