GBP/USD Technical Analysis August 11, 2011

GBP/USD fell on Wednesday, breaking below the 1.63 support area that had been the bottom of a recent rectangle pattern. We see this pair as being in two rectangles at the same time, with one being between 1.63 and 1.65, and the larger one being within the 1.60 and 1.65 levels. The pair will continue to be choppy, but with the unrest in England at the moment, as well as fears around the world in various markets – the USD is probably the stronger of the two currencies at the moment. Because of this, we look to sell any rallies now.

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