GBP/USD Classical Technical Report 05.06
GBP/USD: The latest pullback has now resulted in a test of some rising trend-line support off of the late March lows, and as such, we will use Thursday’s low by 1.6350 as a gauge for directional bias. Should the market establish on a close basis below 1.6350, then we would expect to see deeper setbacks towards the 1.6000 area further down. However, should we hold above 1.6350 on a close basis, we could see the market attempt to carve a higher low ahead of the next upside extension back towards 1.6750. In the interim, we remain on the sidelines and await a clearer signal.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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