GBP/USD: technical analysis – September 7, 2012

Cable has started to show signs of possible weakness. This morning it has started to fall after positing a shooting start on the 4-hour chart. Momentum is diverging widely with price on the daily supporting the bearish outlook, although the target from the triangle breakout at 1.6120 would seem to suggest there was still higher to go. Initially, therefore I would remain cautious: the move may end at the tough support at 1.5915 and it would require a break below 1.5900 for a more bearish outlook.

Written by Forex4you