GBP USD Facing Resistance at 1.6085

Upside momentum is slowing down in the GBP USD as buying has diminishednear a key 50% retracement price at 1.6085. This price is critical tothe structure of the current rally as it will dictate how much furtherthis market could rally. If this market can establish support above1.6085, then it has a great chance of continuing the rally to 1.6694.

Upside momentum is slowing down in the GBP USD as buying has diminished near a key 50% retracement price at 1.6085. This price is critical to the structure of the current rally as it will dictate how much further this market could rally. If this market can establish support above 1.6085, then it has a great chance of continuing the rally to 1.6694.

Because of the size of the recent rally without any economic substance, traders have been reluctant to add to established positions at current levels. In addition, some traders do not seem too interested in initiating new positions at current levels until the market makes a correction.

Traders are also starting to become concerned about the strong surge in U.S. interest rates. Downside pressure could be building in the Pound on the thought that higher U.S. yields will attract foreign investors seeking a higher return. The problem is higher yields could also raise concerns over the U.S. ability to fund its growing debt.

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James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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