GBP/USD Technical Analysis September 7, 2011

GBP/USD fell hard on Tuesday as traders around the globe are buying the USD for its safe haven status. The global markets are certainly nervous at this point, and when this happens, this pair falls. The pair even managed to break below the 1.60 area, but remains in the very wide support area between 1.5750 and 1.60. With this in mind, we are not willing to sell just yet. A close below the 1.5750 sends this pair into bear mode. Any supportive candles in this “zone” could be worth a small position to the long side if we get a bullish engulfing candle, or even a hammer.

Written by FX Empire