Previous: GBP/USD Respecting Resistance Pivot Area; 1.56 is Key Support (6/18)
GBP/USD Chart 4H 6/20/2012 9:15 AM EDT
Despite poor claimant count data and dovish BoE meeting minutes, the sterling came back from an initial GBP-negative reaction and pushed up new highs in the GBP/USD.
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.
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