Forex Technical Update
GBP/USD Chart Day 6/25/2012 9:43PM EDT
This came after the RSI resolved oversold conditions (but remained bearish by staying below 60), and also came after a test of the 200-day SMA as resistance. With regards to the moving average cross-over and confirmation, you can say the market is in a slingshot to the downside.
Now we are looking for at least the June lows of 1.5280 and maybe even the 2012 low near 1.5240.
The 4H chart shows a closer look at the break below 1.56. By no means is this a strong breakout, and the sterling seems to be more resilient than the EUR and AUD but eventually caught up in breaking June's corrective pattern.
The 4H chart also shows that before the 1.5280-1.53 lows, there is a support pivot area around 1.5455.
GBP/USD 4H chart 6/25/2012 9:40PM 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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