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GBP/USD Analysis 28th December 2012 – Indecision Seen At Key Resistance

GBP/USD Analysis 28th December 2012 – Indecision Seen At Key Resistance

GBP/USD Analysis 28th December 2012 – Indecision Seen At Key Resistance

(Forex-FX-4X.com, Pound/Dollar, Technical Analysis Report, 28/12/2012)

  • The GBP/USD currency pair moved to the lowest level seen in over two-weeks yesterday.  Price has subsequently found an element of support around the 50% corrective retrace of 1.5826 > 1.6305 and is trading around 50 pips higher than the 1.6065 weekly low.
  • This comes in the context of a weekly timeframe doji/pinbar (see fig 2) price action backdrop.  Price has now dropped almost 250 pips since testing the triple-top range high area, and stalling less than 3 pips shy of the previous swing high.
  • An further downside would need to contend with the 61.8% Fibonacci retrace and 1.6000 handle round number area.  Initial resistance has been seen around yesterday’s high at 1.6200.  Key potential resistance remains at the 1.6300 area.  
  • Sterling dropped to an eight-month low versus the euro yesterday as concerns around the UK economy hit the pound – while the euro looks to benefiting from continued short covering and year-end demand.

gbpusd currency GBP/USD Analysis 28th December 2012   Indecision Seen At Key Resistance

GBP/USD Daily Chart – 28/12/12 – fig 1

gbpusd pinbar d1 GBP/USD Analysis 28th December 2012   Indecision Seen At Key Resistance

GBP/USD Weekly Chart – 28/12/12 – fig 2

gbpusd analysis GBP/USD Analysis 28th December 2012   Indecision Seen At Key Resistance

Pound/dollar technical analysis report, GBP/USD Forecast

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