GBP/USD 27/12/12 – Fib Confluence Hit After Triple Top Rejection
- As noted in our recent updates the pound/dollar currency pair has now failed on three separate attempts to break sustainably through the 1.6300 area. The 1.6300 area triple-top rejection has now seen an extended follow through over the recent trading sessions.
- GBP/USD is now trading at a Fibonacci confluence area comprised of the 61.8 and 38.2% Fib levels aligned around 1.6124 as per the daily chart below.
- Any extended downside move brings the 1.6000 round number and 61.8% Fibonacci retrace area into focus, as a tactical point of interest.
- The 1.6300 area prior resistance high area is seen as key going forward from a technical perspective. A breakout above this area could see increased volatility.
- From a sentiment perspective – the market’s attention is firmly back on negotiations around the U.S. ‘fiscal cliff’.
- In related markets the GBP/JPY pair is trading around the highest level seen since April 2011, as the Japanese yen has experienced further depreciation and continues to broadly under perform. EUR/GBP is trading above the recent 0.8164 range resistance highs as the EUR/USD has held relatively firm while cable moved lower.
- A weekly pinbar/doji candle has formed showing an element of indecision.
GBP/USD Technical Update – 27/12/2012
GBP/USD Forecast, Technical report, News, Outlook.