GBP/USD Technical Analysis for May 4, 2011

The GBP/USD fell apart today, plunging under the 1.65 area. Because of this, the pair looks like it might be bearish for the immediate future. Very heavy support is still seen at 1.63, and is likely to be tested. Shorting is still difficult as the move was so sudden that it hasn’t given many people the chance to get involved. Look for support at 1.63, and a possible buying opportunity. As for shorting – it would be against a long-term trend, and the risk/reward ratio has just been blown by today’s action anyway.

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