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GBP/USD Leans Toward Further Overall Decline Despite Rebound

GBP/USD (daily chart) as of Tuesday (7/12/2011) has dropped down to hit a key 38.2% Fibonacci retracement (of the May 2010 lows to the May 2011 highs) and also approached its 1.5750 downside support target, before making a significant rebound. This occurs after a couple of weeks of sideways consolidation around 1.6000 that followed on the heels of a bullish trendline breakdown. For more GBP/USD forex technical analysis, please click here.

James Chen, CTA, CMT
Director of Technical Research and Education