GBP/USD – The rally of the previous weeks has seemingly come to a screeching halt following Friday’s strong bearish outside day. We had written of the risks for a material pullback above 1.6500 and the market stalled out perfectly by formidable internal range resistance (previous shoulders of major h&S top) just ahead of 1.6700. Next support comes in by 1.6240, with a break below expected to accelerate declines towards former resistance at 1.6130. Any intraday rallies should be well capped ahead of 1.6500.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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