Forecast
Gerardo Porras
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On the weekly chart, we can see obviously that GBP/USD currency pair has broken a long-term up trend-line in June 2011 with successful retesting in August.
Since then, Technically the pair is in a downtrend as it's making lower lows & highs as marked on the chart.
Last week we had 1.5855 acting as a temporary support which got broken initially targetting 1.5605.
Here on the daily chart, we see a major swing down from 1.6616 down to 1.5271.
Since the pair has formed a typical bullish hammer at October 6, it has been moving up till it reached 61.8% fibonacci level.
It's important to note 1.6110 is a major key-level for the pair as it's 61.8% Fibonacci level & a distinct previous low.
We can obviously see the two or three successful testing for this level marked on the chart.
Last week we had breakout of the previous range 1.6130-1.5865 to the downside, which we suggested a short entry at the retest of its lower limit.
Area 1.5640-1.5525 is important to watch this week as it's a good DEMAND zone.
Bullish reaction towards it indicates bullish retracement while its break will lead to another decline in prices.
The pair is trending down inside a bearish channel since it broke the consolidation zone 1.6130-1.5865.
It's important to watch 1.5615 which is 61.8% Fibonacci level of the last swing up 1.5270-1.6165. as its break will open the way down to 1.5510.
Our suggested short position at 1.5865 has hit all of its TP levels today.
http://instaforex.com/forex_analysis/44300/?x=OUE
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