Thursday, May 10, 2012

Did the GBP complete the correction?

The GBP was one of the strongest currencies during last weeks. The pair reached 1.63 but failed to continue the up move and eventually started a technical correction. The pair dipped yesterday to a medium term support level around 1.6060. The support is from 02/04 daily high combined with 50% Fibonacci retracement to the up move starting from 1.5818 to 1.6300. On intraday charts we are seeing a clear channel. A break of the channel, confirmed by technical indicators, could define if the correction is over or open the door to a deeper down move to the strong support level around 1.60.

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