GBP/USD Weekly Technical Report 19-23/11/2012

The pair has fallen sharply below its 200-day moving average during the previous period, finding modest support at 1.5820 pivotal support regions as seen on the provided daily chart. The recent mild bounce from the aforementioned support has alleviated the oversold condition in the RSI 14 indicator but we still can notice that a bearish momentum channel has been drawn on the indicator. To recap, the current retracement should be well-capped below 1.60 figure while re-visiting 1.58 territories followed by 1.5740 will be likely in the cards.

The trading range for this week is among key support at 1.5630 and key resistance at 1.6180.

The general trend over short term basis is to the  downside  targeting  1.4225  as far as areas of  1.6875  remain intact.

Support 1.5850 1.5780 1.5730 1.5685 1.5630

Resistance 1.5960 1.6000 1.6075 1.6125 1.6180

Recommendation Based on the charts and explanations above our opinion is, selling the pair around 1.5960 targeting 1.5740 and stop loss above 1.6125 might be appropriate this week.