Forex Technical Update

GBP/USD 1H Chart 7/10/2012 7:35AM EDT

GBP/USD

The GBP/USD has been paring the losses in July from 1.5726 to 1.5464. Over the 7/10 European session, the pair came up to test the 1.5555 level which was Friday's (7/6) resistance pivot, and the currently projected flag/wedge pattern resistance.

Also note that the RSI is back at 60. A correction up to this point is still within the scope of a bearish market.

A break above 1.56 however makes the bearish outlook unclear. The bullish outlook is limited too, to a declining trendline seen in the 4H chart, probably close to 1.5655 if the market does extend the current rally there.

GBP/USD 4H Chart 7/10/2012 7:37AM EDT

GBP/USD

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 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.