GBP/USD Technical Analysis September 14, 2011

GBP/USD fell gain on Tuesday, and is testing the lows of the massive consolidation area between 1.5750 and 1.65 again. This is a bearish sign for the pair, and the fact that yesterday’s candle was broken through shows that the market is starting to apply serious pressure to the pair. There is talk of monetary stimulus in the UK, and this will weigh on the pound if it comes to be. There are also the problems with UK banks being so exposed to Europe. The pair is a screaming sell if we can get a daily close below the 1.57 level. We think that the recent shooting stars at 1.60 will provide a cap to any bounce at this point.

Written by FX Empire