GBP/USD Forecast March 28, 2012, Technical Analysis

The GBP/USD pair rose for much of the Tuesday session to test the 1.60 level. The result was a failure at the close, and a shooting star for the candle. This is the biggest resistance area on the chart currently, and we expected some kind of reaction because of it. The candle is a perfectly placed one, but the latest move in this pair suggests that this could possibly just be a return to the previous consolidation as the pair continues to move sideways. As a result, we are sellers on the break of the lows from Tuesday. A break above this candle would be massively bullish at this point and have us long on the daily close above 1.60 as it would signal continued bullish momentum.

GBP/USD Forecast March 28, 2012, Technical Analysis

Written by FX Empire