GBP/USD Technical Analysis September 9, 2011

The GBP/USD pair rose on Thursday after the Bank of England had no mention of any new quantitative easing, pushing the value of the Pound upward. However, as the day wore on, it started to focus on the global growth story in general. The gloomy outlook pushes demand for the USD, and as such – the pair fell in later hours. The pair has formed a shooting star-shaped candle two days in a row, a very bearish sign. This could be foreshadowing a move lower, perhaps to 1.5850 or so – the July low. If it goes through that area – this pair falls for several handles. We don’t buy this pair, and if we break the lows of the previous two days, it might be worth selling a small position in this market.

Written by FX Empire