GBP/USD Technical Analysis for August 12, 2011

GBP/USD bounced on Thursday as traders bought into the markets, pushing risk higher again. However, this pair is finding a little bit of trouble at the 1.6300 area. This is roughly the area that once served as support, and could serve as resistance. This is classic “what was once the floor becomes the ceiling” technical analysis, and now all we can do is wait to see if it happens to hold the advance in this pair. If not, we feel that there is a serious ceiling in place at the 1.65 area. We are looking to sell weakness in the 1.6250 area, and if we don’t get it – are willing to wait until closer to 1.65 in order to sell weakness.

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