Forex Technical Update

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GBP/USD 4H Chart 8/16/2012 6:55AM EDT


The GBP/USd has had a directionless week so far as seen in the 1H chart where it traded sideways. The resistance pivot is  at 1.5728. A weak bullish push during the 8/15 session after some positive UK jobs quickly faded.

Support was at about 1.5655 before the market took it out heading into the 8/16 European session, but rebounded sharply from 1.5635 as the session progressed. A clearer break of this week's range will be needed to introduce some directional clues. But we have a larger consolidation pattern at hand as well.

The daily chart shows a consolidation pattern with an  upper resistance at 1.5775. Support is held with a rising trendline which could meet declining price action at about 1.5580. A break below and a hold below 1.56 on a pullback would be a clue for the market to test the consolidation pattern's support pivots, with 1.5397 in sight. A more aggressive bearish outlook for the break is the 1.5265 low made on  June 1.

GBP/USD 4H Chart 8/16/2012 6:55AM 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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