GBP/USD 1H Chart 7/13/2012 9:37AM EDT
The GBP/USD exposed the 1.5280-1.53 June low after a break below recent consolidation seen in the 1H chart. However, it has found support just below 1.54, and has pulled back to 1.5510, 61.8% retracement of the latest near-term downswing. The bearish continuation scenario, should find resistance here, though there may be some further upside to the 1.5530 area, 200-hour SMA, and July’s declining trendline, and still be within the bearish outlook.
A break above 1.5540 however, likely clears these key resistance factors and shelves the bearish outlook.
GBP/JPY 1H Chart 7/13/2012 9:40AM EDT
GBP/JPY is also in a corrective rally after a breakout. The break below 122.75-123.00 support area exposed the June low near 119.00. But the psychological barrier of 122.00 was defended, and the GBP/JPY is now back to the previous consolidation support area. A hold below 123.00 with the 1H RSI reading below 60, would be strong signs that the bears area still in charge.
A break above 123.25 likely shelves the bearish outlook.
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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