By FX Empire.com
GBP/USD initially rose during the week to break above the 1.58 level, but pulled back after negative news came out of the debt crisis talks – in other words, nothing has been decided. Also, the Bank of England also hinted at expanded quantitative easing, so this pair fell. With the “risk off” attitude coming back into the markets, the cable pair will more than likely continue downward.
The shooting star that printed for the week sets up a sell trade on a break of the lows. The pair could run all the way down to the 1.53 level again if this signal gets fired off, and as a result could be one of the better set ups this week. The pair can’t be bought until we get over the 1.60 round number, so we are primarily are looking for a selling signal at this point.
GBP/USD Forecast for the Week of February 13, 2012, Technical Analysis
Originally posted here
