Forex Analysis: GBP/USD Classic Technical Report 01.09.2013

Prices put in a Bullish Engulfing candlestick pattern above support at a rising trend line set from June, hinting a move higher is ahead. Initial resistance is at 1.6130, the 23.6% Fibonacci expansion, with a break above that targeting the 38.2% level at 1.6206. Alternatively, a drop below the trend line (now at 1.6019) targets swing lows at 1.5913 and 1.5822.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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