GBP/USD Technical Analysis September 8, 2011

The GBP/USD pair rose during the Wednesday session, but failed to close above the 1.6000 level. The resulting candle is a “shooting star-like” candle that appears at the bottom of the recent range. This shows that the bulls tried to rally at the bottom, but haven’t concretely done so. Because of this, we are more likely to look for a rally to short if and when it comes. If not, we would sell on a break lower, but we think the 1.5750 area is the key to going short – if we close below that level, this pair becomes a longer-term sell.

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