Previous: GBP/USD Consolidating Above the 200-day Moving Average (11/13)
GBP/USD 1H Chart 11/14/2012 7:33PM EDT
Consolidation range breakout: The GBP/USD started the week falling below 1.59 and finding support at 1.5857. It has since consolidated through the 12th and 13th, and broke below the consolidation range support on the 11/14 US trading session. Price action shows not only a break below 1.5857, but rejection from a brief attempt to pull up back into the range.
Momentum: The 1H RSI has been tagging 30, and holding below 60. This remains the case and reflects a persistent bearish momentum in the short-term.
Support: As noted in the previous couple of updates, the next key support area for cable is in the 1.5780-1.58 area. This involves the 50% retracement, a rising trendline, and a resistance/support pivot.
GBP/USD Daily Chart 11/14/2012 7:35PM EDT
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.