GBP/USD analysis (July 05 2011)

The pair might be ready to resume its move to the downside after a shy attempt above 1,61 resistance.


GBP/USD: daily chart

A break below 1,60 would expose a new test of recent low at 1,59.

Only a break above 1,6150 would leviate the downside pressure and expose 1,63 (descending trendline and key level).

Market participants will probably keep a close eye on the BoE rate decision (and associated comments) on thursday before reevaluating their strategy on the pair.