FX Times: Daily Technical Update GBP/USD Assessing Breakout

[cmsfx]

Via fxtimes.com
Fan Yang \ 9:38 AM EST \ December 11th, 2009

GBP/USD


* Daily and 4H: Apparent in the daily time-frame, the market is testing the 1.6200 support area and have been indecisive this week. The 4H time-frame shows a the market pushing the pair outside of a triangle pattern on the down-side. The break is becoming an aggressive one at the beginning of this Friday’s US session. The 1.5900-1.6000 area is an intermediate target if the market is able to follow-through next week with today’s bearish breakout.
* 1H: Looking closer for more detail, the 1H time-frame shows that in the near-term, the market is approaching oversold conditions. However, the price action is aggressive and may extended the period in “oversold” conditions. However, there may be support just below the 1.6200 area. A possible scenario is that the market will bounce from this support, but the rally would be unsustainable if bearish interest has taken over. That would be a confirmation for the current bearish signal and may improve the likelihood that the market will decline to the intermediate target in the previous consolidation zone of 1.59-1.60.



Fan Yang
Currency Analyst
Commodity Trading Advisor

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