GBP/USD analysis (July 08, 2011)

The Cable remains under pressure with the break back below 1,60 which opens the door to the 1,59 level but there is also potential for a bounce as we explain below.

GBP/USD: daily chart

The pair is trading around its 200 moving average with daily studies entering in oversold levels. A double bottom might be carving out but it is too soon to tell. We need to see a break above 1,6140 to validate a reversal structure.

So we are not necessarily bearish on the Cable for the time being. We would like to see how things evolve today in a possible active market.