Sterling Support Holds - 7 February 2012

Colin Jessup

By: Colin Jessup

The GBP/USD, or Sterling as it is known, was once again unable to close below the weekly pivot S/R zone at 1.5778. This level was tested by the bears on at the end of last week and again today without success. Similar set-ups can be seen on the EUR/USD which stopped the bears at the weekly support level of 1.3026, as well as the 6 cousins which include the EUR/USD, GBP/USD, AUD/USD, USD/CHF, USD/JPY and the USD/CAD.

It is probable that we will see the Sterling re-test 1.5730 if we clear 1.5778 and a close below 1.5730 could suggest a run for the monthly pivot at 1.5600. With the pair being bullish for some time now, this is most likely a consolidation effort before pushing higher. Resistance to the upside can be found at 1.5840 with a weekly S/R zone at 1.5903. The pair will have a fight on its hands going either higher or lower with heavy traffic found both above 1.5900 and below 1.5770. I am neutral on this pair until I see a break one way or the other.

GBP/USD 2/7/12

Happy Trading!

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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