GBP/USD Forecast Jan 29 2012
GBP/USD broke the resistance of 1.5630 and then moved as high as 1.5741 as mentioned during last weekend and quoted above. The currency pair closed for the week strongly at 1.5728.
The price action of the last week and the strong closing suggests that we can expect some more upward gains. But please note that GBPUSD is approaching a strong resistance zone and need to be carefully watched. The peak of this resistance zone is 1.5779 which has not been broken since end of November. For any convincing upward moves we need to wait for a break of 1.5779/1.5785. A break of this should take the GBPUSD towards the resistance of 1.5880 and above that towards the psychological resistance of 1.6000.
While mentioning the above, please note that we are considering this upward move just as correction and expect a fall from one of the mentioned resistance levels. There is no change on our overall bearish outlook as yet and that will only change with any firm break first over 1.6000 and then finally over 1.6165.
On the down side a break below 1.5516 will turn our focus back towards downside towards first 1.5400 support and then to retest the recent 1.5279 and then 1.5233. A firm break below this and the minor support of 1.5220 should take the GBPUSD towards 1.5160. The psychological support of the approaching 1.5000 ranges should gain strength from this level.
You may also check daily technical gbp usd analysis, usd/chf analysis and the weekend gbpusd forecast at ForexAbode.
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