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GBP/USD Tests London Lows And Bounces. Can Topside Resistance Hold?

The GBPUSD (NYSEARCA:FXB) tested the London morning low at 1.5521 in early NY trading and found some buying interest. In the course of the move down, the price has moved below the 200 bar MA (green line) on the 5 minute chart at the 1.5538 level. This was the first break below that MA level today. Staying below will keep some intraday pressure on the pair. A move above it, and the flattening 100 bar MA (blue line) on the same chart at 1.55486 will be needed to keep the buyers in firm control. The high for the day at 1.5580 and the high from last week at 1.5599 are the next upside targets if this area can be breached.

Should the price remain below the aforementioned resistance (100 and 200 bar MA levels at 1.5538-48) ), the next downside targets become:

  • 1.55118 = 38.2 of the move up from Friday
  • 1.5497 = low for the day.
  • 1.54907 - midpoint of the days range.

http://www.forexlive.com/blog/2012/06/11/gbpusd-tests-london-lows-and-bounces-can-topside-resistance-hold/