GBP/USD Weekly Technical Report 26-30/11/2012

Despite achieving bullish actions on Friday that took the pair to close above 38.2% Fibonacci of the recent downtrend from 1.6310 to 1.5820 but Cable couldn’t breach through our previous suggested risk limit at 1.6050. In the interim, we can notice how the pair is presently facing a confluence of sensitive technical levels where the resistance of the bearish channel exists while the contrarian between momentum and trend indicators becomes very clear. Accordingly, we believe that risk versus reward ratio is inconvenient for intraday trading; whilst the trend of the week will be clearer later. 

The trading range for this week is among key support at 1.5740 and key resistance at 1.6250.

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

Support 1.6000 1.5960 1.5925 1.5850 1.5780

Resistance 1.6065 1.6125 1.6180 1.6200 1.6225

Recommendation Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move this week.