Sinking Sterling?

Colin Jessup

By: Colin Jessup

The GBP/USD is sinking slowly, sort of. Since hitting a yearly low of 1.5272 in October, we moved as high as 1.6166 and and then fell to 1.5423 in November. Price reacted with bullish sentiment after hitting that low and moved back up, kissing the 50% retracement level before dropping again to its current level of 1.5628 (at time of writing). We have an intra-day support zone at 1.5540 which seems to he holding, but there is a chance we will see the pair fall further to the weekly support, and previous low of 1.5440. Price has had difficulty with the 1.5440 level many times, and in the last 12 months has tried 3 previous times to push lower without success. If we do in fact fall lower, 1.5100 is not out of the question. Short term, my money is on the Bulls to possibly retest the 50% level again if we can break resistance at 1.5700.

Happy Trading!

GBP/USD Daily 12/6/11


Colin Jessup
Colin Jessup is certified in both Securities & Technical Analysis from the Canadian Securities Institute, founder of Omegatrader Canada and a Live Trading Coach at TheTradingCanuck.com, a service that calls live trades to captures dozens of pips daily with low drawdown.

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