Forex Technical Update
GBP/USD Daily Chart 9/9/2012 11:01PM EDT
Rally After NFP: The GBP/USD pair has maintained a bullish mode since the June 1 low at 1.5265. The rally has been choppy, but it accelerated high after Friday's (9/7) poor USD Non-Farm Payroll, which actually weighed on the US Dollar across the board. The GBP/USD was able to push above the 1.60. The RSI in the daily chart kissed 70, showing some nascent bullish momentum, though the overall momentum during 2012 has been range-bound.
Resistance Pivots: If the market clears 1.60, what are some resistance pivots ahead? In the daily chart we see one in the near-term at 1.6062. This was the high on April 2 and a support pivot during the May 9 session. More importantly, we see a resistance pivot at 1.6165 in the weekly chart set at the high of Oct.31, 2011. Above that another significant resistance pivot is seen at 1.63 handle - 1.6305, the high on April 30, 2012.
Support Pivot: As we start the week, the pair seems to have trouble clearing 1.60. The previous resistance pivot at 1.5910-1.59 handle can be seen as a possible support for a correction, as it has been used as support and resistance a couple of times since 2011. Below that a more significant support pivot can be see near 1.5750. The bullish scenario has downside risk toward this support pivot, which is near the 200-day SMA, and probably near the rising channel support seen in the daily chart, if price is to slide. Below 1.5750, the bullish outlook may already have become invalid.
GBP/USD Weeky Chart 9/9/2012 10:07PM EDT
Fan Yang CMT is a trader, educator and a 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.
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