GBP/USD Classic Technical Report 07.05.2012

Prices sold off as expected after completing a bearish Dark Cloud Cover candlestick pattern on a retest of rising trend line support-turned-resistance. The pair is now showing a Harami setup above support marked by the 50% Fibonacci expansion at 1.5574, warning of a possible bounce. Initial resistance lines up at 1.5609, the 38.2% level. Alternatively, a break of support targets the 61.8% Fib at 1.5540.

4hr Chart - Created Using FXCM Marketscope 2.0

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

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