GBP/USD Technical Analysis October 28, 2011

The GBP/USD rose again on Thursday as it reacted to the good news of a EU bailout agreement. The pair has now broken above the 61.8% Fibonacci retracement, and now look set to move much higher. Based upon the Wednesday candle, it looks as though the 1.60 level should end up being supportive at this point, and buying can only be done as long as we are above that area. Buying on dips is probably going to be the best way to go about this pair until we get lower than the 1.60, and as the world gets more and more comfortable with the results of that bailout, this pair should continue to rise.

Written by FX Empire