GBP/USD Technical Analysis August 9, 2011

GBP/USD fell hard on Monday as the “risk off” trade came into vogue again as a result of the US downgrade. The pair was near the top of the recent consolidation area, in the form of the 1.65 zone. Because of this, the market was already “leaning” in a downward direction and it only took a little bit of bad news to get the riskier Pound to sell off. However, we feel that the 1.63 area is support, and this pair will more than likely continue to chop around in this 200 pip zone for a while.

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