GBP/USD Technical Analysis October 24, 2011

In a surprising show of strength, the GBP/USD pair broke above the resistance area at 1.58 on Friday. The level had been keeping the market down, and as such the market popped after it gave way. However, the 1.60 level is roughly the 50% retrace of the total move, and it should provide massive resistance to the cable pair. We think the buy move has already ran too far, so looking for weakness closer to the 1.60 level is probably the best route for selling. The pair made an impressive move – but there are a lot of headwinds and potential headline risks out there that could push this pair down.

Written by FX Empire