Prices bounced from support at the 1.60 figure, with buyers once again targeting a falling trend line resistance set from mid-September (1.6130). A break above that on a daily closing basis broadly exposes the 1.63 mark. Alternatively, a drop below support initially targets the 38.2% Fibonacci retracement at 1.5911.

Forex_Analysis_GBPUSD_Classic_Technical_Report_11.01.2012_body_Picture_5.png, Forex Analysis: GBPUSD Classic Technical Report 11.01.2012

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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