September 8, 2008 04:54

Technical Analysis – GBP/USD Approaching Resistance

Posted In: Technical Analysis
By:

9-8-08

5:50a GMT – GBP/USD is approaching resistance at 1.8000 as the pair saw its first major corrective action in weeks. I will continue to sell the downtrend and will look for selling opportunities on this latest strength. Wait for candlestick confirmation or other technical indicators, however, as the pair is drastically oversold and any bad news out of the U.S. could cause traders to begin covering their shorts.

Trading Idea: Look for short trade confirmations (e.g. bearish candlestick reversals) around resistance at 1.8000 with short targets at 1.7800, 1.7750, and 1.7650. If 1.8000 is broken look for a challenge of 1.8200.

(click to enlarge)

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