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.
GBP/USD Daily Chart – 28/12/12 – fig 1
GBP/USD Weekly Chart – 28/12/12 – fig 2
Pound/dollar technical analysis report, GBP/USD Forecast