Previous: GBP/USD Respecting Resistance Pivot Area; 1.56 is Key Support (6/18)
GBP/USD Chart 1H 6/19/2012 11:17 AM EDT
Risk continues, and mirrors the action we saw last week, where after an initial pop, we saw a fade of risk, and then a recovery throughout the rest of the week. So far this week, we had the initial pop and the fading, and is starting to climb back up, with even more strength than we saw last week in pairs like EUR/USD and AUD/USD, which already made new highs for the week.
The GBP/USD just made a new high now, but has yet to confirm a breakout to the upside. It should be noted that just above this week’s high so far, we have some key resistance factors to clear.
The daily chart shows that we have a declining trendline, 200-day SMA, and a pivot zone from the 1.5760-1.5785 area. But if the daily RSI holds below 60, there is still bearish momentum, but it won’t be as clear if price does push above 1.58. A break above 1.58 clears these resistance factors, and opens up the 1.60 handle.
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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