GBP/USD Technical Analysis September 28, 2011

GBP/USD spiked on Tuesday, continuing the three day rally in this pair. However, there was a bit of a selloff late in the session and this created a long wick at the top of the candle. The pair is most certainly in a downtrend, and as a result we are selling rallies. It looks that the short-term charts might offer selling opportunities as the pair looks limp in late session trading. We do not buy this pair as it is related to the “risk on” trade and there are far too many issues out there to think that headline risks won’t come back into the picture from time to time.

Written by FX Empire