A more technical look at the markets from InterTrader
After recapturing the $1.600 level, the GBP/USD spread betting pair is forming a second shooting star in a row, as shown on the daily chart this morning.
The bulls are now targeting November’s highs at $1.617, but it looks like the $1.61 level offers strong resistance at the moment.
GBP/USD Technical Chart
Attempts to break above that area are likely to be met with resistance, as the fundamental picture for the sterling continues to be discouraging, with the nation’s credit rating review among the most imminent threats.
As shown on the chart above, the market remains well supported by an uptrend line which has been in place for about a week now. As long as the support base at $1.608 remains intact, there is no reason for the bulls to worry, with any pullbacks towards that area likely to be a good buying opportunity.
In terms of topics today, we have the BoE announcement, with forex spread betting investors looking for additional stimulus measures. Later today, the focus shifts to the other side of the Atlantic with the US Jobless Claims due for release at 1.30 pm (GMT).
Good luck
Dafni Sedari
(Original article written 6 December 2012).
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