By FX Empire.com
GBP/USD had a strong week as traders continue flee from the US dollar. The Dollar got sold off after the Federal Reserve announced an extension of their ultra low interest rate policy on Thursday which had traders in sell mode when it came to the Greenback against all other currencies that we report on. The candle closed near the highs, and this is normally an important hint of a strong market. The 1.55 level below should now serve as a “floor” in this pair, and the resistance can be seen at 1.57, going as high as 1.58. The market will have to make a decision soon, and we think that the sellers could step back in. Your signal will more than likely appear on the daily chart, and we would sell signs of weakness in the above mentioned resistance zone. A weekly close above that level changes everything though.
GBP/USD Forecast for the Week of January 30, 2012, Technical Analysis
Originally posted here
