GBP USD Nears Key Resistance Area

GBP USD is trading sharply higher overnight, fueled by bullish commentsfrom a Bank of England official. The BoE’s Paul Fisher said that thecentral bank’s quantitative easing program was working.

Daily Analysis

GBP USD

GBP USD is trading sharply higher overnight, fueled by bullish comments from a Bank of England official. The BoE’s Paul Fisher said that the central bank’s quantitative easing program was working.

Technically, the main trend turned up on the daily chart when the GBP USD broke through the last swing top at 1.6120. Earlier in the week a closing price reversal bottom at 1.5706 started a strong short-covering rally which has since triggered the change in trend.

Based on the main range of 1.6741 to 1.5706, traders should watch for a retracement to 1.6223 to 1.6346. A down trending Gann angle also comes in at 1.6261 today. This forms a resistance cluster at 1.6223 to 1.6261.

Support is being provided by uptrending Gann angles at 1.5866 and 1.5786.

Long traders should watch for a possible reaction to the down side if 1.6223 to 1.6261 is tested. 

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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