GBP/USD Forecast January 4th, 2012, Technical Analysis

GBP/USD rose sharply during the Tuesday session as traders bought the “risk on” story for the day. However, we have seen this story before, and know how quickly things can change in these markets. The pair is getting close to the 1.57 level, which is the start of the resistance level that has kept this pair in a range. With this in mind, we are looking for weakness to sell at these levels. The shorter time frames may provide weak candles to sell. We see a break of 1.58 as necessary to think of longs at this point.

GBP/USD Forecast January 4th, 2012, Technical Analysis

Written by FX Empire