GBP/USD Technical Analysis September 6, 2011

GBP/USD fell again on Monday, but the resulting candle is looking more and more like a pseudo-hammer, and as such we feel that a bounce might be in the cards. Add to that the fact that the support in this pair has been from 1.58 to 1.61 recently, and you have a recipe for just that. We are ultimately bearish on this pair, but for the time being it looks like it will stay in consolidation and perhaps rise as high as 1.64 in the near-term. We would buy on a break of the Monday highs, while selling is very difficult until we get below 1.58 or so.

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