GBP/USD Classical 02.01
GBP/USD:The market has been very well bid since reversing sharply in the previous week, with the rally now totally negating any short-term bearish sentiment following the break back above 1.6060. From here, there is scope for fresh upside towards 1.6200, but we do see some solid resistance that comes in by the 1.6100 figure in the form of the October highs and a 78.6% fib retrace off of the Nov-Dec move. As such, our preferred strategy is to look to sell into rallies towards 1.6150 on Tuesday in anticipation of yet another topside failure above the 1.6100 barrier. A daily close back above 1.6100 would however concern and expose a full retracement back towards the November peak at 1.6300.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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