GBP/USD fell for the week as the 1.53 level was punctured for the second time. We have been talking about this level as being absolutely vital for weeks here at FXEmpire and the fact that it held was impressive, but it only did so by the skin of its teeth. The recent action suggests that it is simply a matter of time before this pair drops.
The 1.53 is a neckline of a larger complex head and shoulders pattern, and as a result we are willing to sell sub-1.53 hand over fist. However, we are going to need to see a daily or even weekly close below it to get aggressive. Until then we can simply wait or sell rallies as they come.
GBP/USD Forecast for the Week of January 16, 2012, Technical Analysis
Originally posted here
