GBP/USD 4H Chart 7/25/2012 10:05AM EDT
The GBP/USD popped up after showing bearish breakout during the early part of the 7/26 Asian session. However, Draghi’s statements pushed the USD down across the board in a bout of risk-on trading. The 4H chart shows the pair rallying from just below 1.55 to 1.57 during the early 7/26 US session.
It is now heading to July’s highs around 1.5725. Above that, we have a range/consolidation high at 1.5780.
The daily chart shows that this area is also where the 200-day SMA reside. A break above 1.58 can expose a declining trendline that goes back to April 2011. The market would probably meet this resistance factor around 1.6150. Before that, the 1.60 psychological handle should be considered as possible resistance as well.
GBP/USD 7/26/2012 Daily Chart 10:05AM EDT
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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