GBP/USD Forecast for the Week of Nov. 14th, 2011, Technical Analysis

GBP/USD fell during the week to the 1.5850 support level, only to bounce back up again on Friday. The move on Friday was low liquidity, but it did form a hammer for the second week in a row at the 1.60 level. This made the chart suddenly take on a very bullish tone, and we feel that the breaking of the top of the weekly candle form last week, (1.6164) could send this pair looking for the 1.68 handle. Selling isn’t possible until we break the lows in the 1.5850 area.

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