GBP/USD Technical Analysis October 17, 2011

The GBP/USD pair rose rapidly during the Friday session as traders took on more risk around the world. The 1.58 level was broken, but the later hours of the session saw this pair pullback. The real question now is whether or not the pair can continue. So far, it looks very bullish. With the G20 meeting over the weekend, traders will focus on anything Europe-related coming out, and as the British are so exposed to the EU debt issues, this will certainly have an effect on this pair.

The pair looks strong technically, but is going to be prone to headline risks at this point in time. The issues in Europe are simply far too troublesome for it to be any other way. Because of this, we are still looking for rallies to sell, but this could be some time away. If we see a gap down at the week’s open – this pair falls hard.

Written by FX Empire