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Wednesday, March 21, 2012

GBP/USD Intraday Technical Analysis 2012-03-21


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The price is now testing the upper limit of its medium term bearish channel at 1.5910 and seems to initiate a decline. Though puncturing through these levels will free up significant potential and start a bullish trend.
Technical indicators provide sell-signals and are getting closer to the overbuy zone supporting the assumptions of a decline. Bollinger bands are much discarded as a result of a strong increase during these days. Stabilization is expected in the short term.
According to previous events, the market will indicate a bullish opportunity as soon as the spot rate has broken its resistance at 1.5910 with the 1st objective of 1.5970, then 1.5990. A break through 1.5890 will change the plan.

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