GBP/USD Weekly Technical Report 1-5/10/2012

Cable has slumped before the closing of the previous week to achieve a very negative closing below the initial support -current resistance- at 1.6180 which represents 88.6% Fibonacci of XA leg  of our caught double top Bat harmonic pattern. Actually, the pair has formed two bearish engulfing candlestick over daily basis and an evening star over weekly studies reinforcing the bearish harmonic overview. Our main technical objective for this harmonic study resides at 1.5925.

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 1.6160 targeting 1.5930 and stop loss above 1.6300 might be appropriate this week.