GBP/USD Classical 03.26
GBP/USD: The market looks to be in the process of a bearish consolidation, with an eventual break below 1.4780 to confirm and open the next major downside extension. The 10-Day SMA has been below the 20-Day SMA for a good portion of 2010, and with the shorter-term SMA now kissing the 20-Day (slightly above), we could once again be on the verge of another major decline. Key short-term resistance comes in by 1.5000, with a break back above this level required to take the immediate pressure off of the downside. Ultimately however, only back above 1.5400 would force a shift in the structure.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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