GBP/USD Technical Analysis July 13, 2011

GBP/USD fell hard on Tuesday, but bounced to form a hammer just above the all-important 1.59 level. The candle shows how hard it is going to be to break the level, and days like this is why we have mentioned more than once we want to see a close of the day below 1.59 – this kind of action can get you into trouble. The pair looks like a bounce is likely, but this should only provide a higher level from which to sell.

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Forex Mansion