4 January 2010
GBP / USD technical analysis
The “Bears” have tried to test the 1.5800/10 support, which was mentioned earlier, but met a strong response of the “Bulls” at the level of 1.5830. The price started growing after a test of this minimum and is now at 1.6230/20. The rise and consolidation of trades above resistance at 1.6070/80 shows a change in the market sentiment. The growth continuing above 1.6250/60 will create good conditions for the expectations as for the test of resistance of the long-term trend line (red diagonal line) that was broken last month. The additional strong resistance on the way is at the level of.6340. The indicators, which have change the direction for rising, add the arguments that increase the probability of this scenario. The breakdown failure of the resistance at 1.6250/60 and return down with fixing below 1.6210/00 will be signals of the descending trend resumption.
Opening of the long positions is likely to be seen in the logical breakdown of the resistance at 1.6250/60 with the first target at 1.6300/20.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst
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