By: Colin Jessup
The bearish action on the GBP/USD may be coming to an end, if only temporarily. Price has printed a daily Spinning Top indecision candle with almost equal wicks above & below. The lower wick has pushed into the support zone at 1.5440, but closed above it at 1.5408. The day opened at 1.5478 leaving only a 30 pip difference between the two. The days range was 123 pips overall, but the candle is only slightly bearish. With the unsuccessful attempt to close below 1.5440 we may see some bullish price action in the hours ahead. As I've mentioned before, this zone is a critical one for the Sterling having found both support and resistance at this level numerous times in 2010. Price will most likely push lower, to the 1.5350 level before rebounding. If 1.5350 is breached, we will probably see price fall to around1.5175 or 1.5130. If however we see price bounce from this level I will be looking for resistance at 1.5650, 1.5830 and then the weekly resistance zone at 1.5955.
Happy trading!
