GBP USD Weakens After Test of 50% Resistance

The GBP USD ran into 50% resistance at 1.6085 and finished the day near the low.  This sets up weakness tomorrow with a test of 1.5893 likely.  A fail to hold this level should create further weakness to another uptrending Gann Angle at 1.5436.

The GBP USD followed through to the upside as investors continued to flock to the British Pound in anticipation of a speedy recovery in the U.S. economy. As U.S. Treasury yields rose throughout the day, however, the British Pound began to weaken and finished the day near the low.

Technically, the GBP USD ran into a 50% retracement price at 1.6085 which stopped this pair at 1.6086. This 50% price was based on the September 24, 2008 Top at 1.8668 and the January 23, 2009 Bottom at 1.3501. Regaining this 50% price sets up a further rally to the .618 retracement level at 1.6694.

Minor Gann Angle support is at 1.5893. If this Gann Angle fails, look for the market to begin an acceleration down to the Main Gann Angle Support at 1.5436. 

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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