By FX Empire.com
GBP/USD fell for most of the week, only to turn it around on Thursday and Friday as the market rallied. The resulting candle is a hammer just above the 1.58 level, and the fact is that even though we have been grinding around a lot lately, the pair looks like it wants to go higher. However, the 1.60 level will need to be closed above on a daily chart in order to get long. If we get that signal, we will aim for at least 1.62 before we run into trouble. On the short side, a break below the 1.5650 level not only breaks below the bottom of the consolidation area, but also a break of the hammers we have on the weekly chart – a massively bearish signal in itself.
GBP/USD Forecast for the Week of February 27, 2012, Technical Analysis
Originally posted here
