GBP USD Set Up for Break to 1.6230

Look for a lower opening in the GBP USD.  Overnight events areencouraging safe haven buying in the U.S. Dollar and Japanese Yen. Traders are also nervous about U.S. Housing Reports and earning announcements from Bank of America and Citigroup.

Daily Analysis

Look for a lower opening in the GBP USD.  Overnight events are encouraging safe haven buying in the U.S. Dollar and Japanese Yen.  Traders are also nervous about U.S. Housing Reports and earning announcements from Bank of America and Citigroup.

This pair is currently trading inside of a main range of 1.6743 to 1.5982.  Yesterday the British Pound ran into solid resistance at the .618 retracement level of this range at 1.6452 when the actual high of the day reached 1.6478. 

The overnight break through the 50% retracement level at 1.6362 is a sign of lower prices to follow with 1.6230 the most likely downside target.

Daily Chart

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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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