Wednesday, July 20, 2011

Commerzbank: GBP/USD will face Resistance

The greenback went up from Monday´s minimum in the $1.6000 area to yesterday’s maximum of $1.6177.

Technical analysts at Commerzbank claim, however, that though the near-term outlook has become neutral, the 3-month downtrend is still in place.

As a result, the pair GBP/USD will face resistance at $1.6220 strengthened by the 55-day MA at $1.6213 that is pointing lower. The specialists expect sterling to fall to $1.5778.

daily gbpusd 1-20

Chart. Daily GBP/USD

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