GBP/USD Chart 4H 6/13/2012 7:10 AM EDT
The GBP/USD has been rallying with respect to a rising trendline that represents June’s correction, seen in the 4H chart. It should be noted that as the market continues to make high lows, the peaks have been stuck at the 1.56 handle. Note that if 1.56 is broken, we have 1.5635 as a pivot, and then the next key level would be 1.5730.
Looking at the 1H chart, we see that as the market made a slightly new high during the 6/13 Asian-European session, the RSI high was lower, developing a bearish divergence with the RSI. This suggests that as the market gears up for the US session, it is losing momentum at the key resistance of 1.56.
There is a near-term support at 1.5540. A break below that basically gives us a double top and suggests a test of rising trendline again.This bearish outlook however is within the correction that started and of May/beginning of June.
Above 1.56, we look at 1.5635, 1.5730; Below the rising trendline we look down at 1.5440, 1.54, 1.53.
GBP/USD Chart 1H 6/13/2012 7:18 AM 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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