GBP/USD Weekly Technical Report 8-12/10/2012

Agreeing with our previous analysis, the pair has plummeted after flirting with the initial resistance levels between 1.6180 and 1.6200 as seen on the provided daily graph. The pair is currently re-attacking 23.6% Fibonacci retracement of the entire upside move from 1.5390 to 1.6310 which represents the CD leg of our efficient bearish harmonic double top BAT pattern. The scientific technical objective of this pattern resides at 38.2% level of the CD leg but we will probably witness some kind of fluctuation around 23.6% level to relieve Stochastic before resuming the reversal that started at short term peak at 1.6310.

The trading range for this week is among key support at 1.5730 and key resistance at 1.6425.

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

Support    1.6075    1.6000    1.5925    1.5820    1.5730
Resistance    1.6180    1.6250    1.6310    1.6350    1.6425
Recommendation    Based on the charts and explanations above our opinion is, selling the pair around 1.6140 targeting 1.5930 and stop loss above 1.6300 might be appropriate this week.