GBPUSD Classic Technical Report 08.16.2012

Prices are stalling after taking out resistance in the 1.5638-62 area marked by a former horizontal support set from mid-February and the 38.2% Fibonacci retracement. Resistance is now in the 1.5769-84 region, defined by the March 22 low and the 50% retracement. A break above this hurdle exposes the 61.8% Fib at 1.5906. The 1.5638-62 area has been recast as near-term support, with a reversal back below that aiming to challenge a rising trend line set from the June 1 low (1.5541).

Daily Chart - Created Using FXCM Marketscope 2.0

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

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