GBP/USD: technical analysis
Earlier forecasts confirmed and the price was held back by 1.5470/80 resistance. Trading is currently moving downwards, the price has retraced towards 1.5450/60 level. Indicators are weakening their bearish readings, suggesting sideways consolidation between 1.5580/70 resistance and 1.5400/1.5390 support. Previous analysis, expecting strong “bullish” potential and a possible reversal up for a medium-term in case the price manages to breach 1.5500/10 resistance and hold above, has all chances to confirm. 1.5580/1.5600 resistance breakout will be the final signal for reversal to the uptrend. On the other hand, it’s worth noting, that the “bearish” sentiment remains strong. The next target is expected at 1.5330/20 level. Decline to 1.5260/70 level is also quite a possibility, if the trades drop below 1.5400.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst
Posted: January 10th, 2012 under Technical Analysis.