GBP/USD Forecast May 1, 2012, Technical Analysis

The GBP/USD pair fell hard on the Monday session as the rally finally stalled. This wasn’t a big surprise on a day that saw so much risk aversion in general, especially since the pair has been so overbought as of late.

The breakout above the 1.6050 level continues to signal to us that the pair is bullish overall, and because of this, we aren’t selling this pair at this point. In fact, we simply see this as a pullback in this market, and should be viewed as a potential chance to buy at lower rates. We will be looking for a supportive candle over the next couple of days in which to buy. Until then, we are simply on hold in this market.

Written by FX Empire