GBP/USD: technical analysis – September 25, 2012

GBP/USD has broken above a down-sloping trend-line and is consolidating in a range. It is possible that it could go higher, although, there is also the chance of a correction. The move out of the triangle has now reached its price objective and so there is a chance the rally has completed. Momentum is also overbought. However, the break above the important trend-line was bullish and it now provides support at 1.6150. Any moves down will probably reach there. As far as upside goes, it will be capped by the consolidation highs at 1.6300. A break above that would lead to a move up to 1.6450.

Written by Forex4you