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GBP/USD Flirting With Critical Support

Since the breakout of 11/23 at the $1.60 level the Pound rallied to nearly 1.6350 and while it looked poised to go higher it has since sold off, bounced at $1.60 on 1/10 and has now returned to test the level. the more often a level is tested the more important it is. The more times it holds the support there is for it but if it breaks price may remain under it for a while.

Critical test of support for this consolidation is now occurring at the $1.60 level. Continued selling below support will move momentum to the downside. A bounce and the range continues back to 1.62.

Read the rest of the forex post and see the GBP/USD chart here.