GBP/USD analysis (July 01st 2011)

The Cable bounce on top of 1,59 has been well capped by 1,61 and a descending trendline (see chart below).

The overall outlook remains bearish but the daily studies are pointing to further gains on the pair over the short term.

GBP/USD: 4-hour chart

The market will have to clear both resistances to continue its move upward. A break to the upside expose next target near 1,62 (daily 20 moving average).

Inversely, a break below 1,5970 might result in an acceleration to the downside with a target at 1,58.