GBP/USD Technical Analysis for May 12, 2011

The GBP/USD rose fast and hard, and then fell in the same manner on Wednesday, showing how confused the market really is at this moment. The 1.63-1.64 area is still holding up, but does need to be strong as it will be the area buyers look at when they want to go long. In the meantime, we suggest waiting to see if it holds before putting a new position on. There is a lot of choppy support below, so we really aren’t happy shorting this pair at the moment either.

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