GBP/USD 1H Chart 7/13/2012 9:37AM EDT
Previous: GBP/USD Breaks Below Consolidation, Exposing 1.5280 (7/12)
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.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
