GBP/USD Forecast July 5, 2012, Technical Analysis

The GBP/USD pair fell during the session on Wednesday as European sold off risk assets in general. The British pound suffered against most currencies, and obviously the Dollar was never going to be any different. With the interest rate announcement coming out this morning from the Bank of England, many traders may have simply been taking profits and getting out of the pair before this extremely volatile situation arises.

The 1.57 and 1.58 area is one thick resistance zone that we need to overcome in order to go along. However, if the 1.55 level gets violated on a daily close, we would be more than willing to sell this pair as it would look like continuation of the overall downtrend.

GBP/USD Forecast July 5, 2012, Technical Analysis

Written by FX Empire