GBP/USD Chart 4H 6/20/2012 9:15 AM EDT
The 4H chart shows the bounce from 1.5655 toward 1.5780 as we enter the 6/20 US session.
It would be a challenge to break above 1.58 before the FOMC meeting at 12:30 PM EDT and the 2:30PM EDT press conference. The 4H chart shows that this is a channel resistance, and the RSI is showing some bearish divergence, suggesting exhaustion.
The daily chart shows that the 1.5780s was a resistance pivot going back to Nov-Dec 2011. This is also a declining trendline resistance and the March-April consolidation support – many key factors here.
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.