GBPUSD: Rebound Signalled at 1.60 Level

Ilya Spivak
October 12, 2012

Strategy: Flat

Prices are testing support at 1.5996, the 38.2% Fibonacci retracement level, with a bullish Morning Star candlestick pattern hinting an upswing is ahead. Near-term falling trend line resistance is at 1.6135. A push above this boundary broadly clears the way for another challenge of the 1.63 figure. Alternatively, a break below support exposes the 50% retracement at 1.5899. Risk/reward considerations argue against entering a trade at current levels and we will stand aside for now.

GBPUSD_Rebound_Signalled_at_1.60_Level_body_Picture_5.png, GBPUSD: Rebound Signalled at 1.60 Level
GBPUSD_Rebound_Signalled_at_1.60_Level_body_Picture_5.png, GBPUSD: Rebound Signalled at 1.60 Level

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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