GBP/USD Forecast February 29, 2012, Technical Analysis

GBP/USD rose during the session on Tuesday as traders decided to take on a bit more risk. However, the pair is at the top of the recent consolidation, and as a result caution should be taken. The 1.59 area has been very resistive, and the area certainly goes all the way to 1.60 as it is a large round number. The pair did manage to bounce from a higher level this time, but at present – this chart could be too messy to buy. We would be more comfortable selling weak candles on a daily close. However, if we close above the 1.60 level at the end of the day we would be buying as it would show real strength.

GBP/USD Forecast February 29, 2012, Technical Analysis

Written by FX Empire