GBP/USD Forecast March 12, 2012, Technical Analysis

The GBP/USD pair fell hard during the session on Friday in order to test the support at the 1.5650 level. This area held again, but it must be stated that the session closed at the absolute lows, and this normally signals that we will see more. If the level gives way, we could see a run down to the 1.55 level in fairly short order. It is there that we would have to think about whether or not the market can get down to the 1.53 handle. Below that we find a massive selloff. We don’t like buying at this time as a few of the most recent days have seen real selling strength. With this in mind, we sell this pair if we get a 4 hour close below the 1.5650 level.

GBP/USD Forecast March 12, 2012, Technical Analysis

Written by FX Empire