GBP/USD Technical Analysis August 26, 2011

The GBP/USD pair fell on Thursday, continuing a move that started on Wednesday. The pair looks extraordinarily weak, as it keeps falling. The 1.6250 area should serve as some kind of minor support, but this latest move has shown the way for this pair. We feel that rallies can be sold at this point, and fresh lows below the Thursday mark could be selling opportunities as well. With the Jackson Hole announcement coming out today, the pair could suddenly reverse direction if the Fed Chairman announces potential QE3. However, without that announcement being made – this pair should continue to fall overall.

Written by FX Empire