GBP/USD Strong Resistance 1.5760 – For July 31, 2012 (Daily Strategy)
Last week the British pound recovered from the losses surpassing the 200 period moving average. After reaching a minimum of six months on June 1 this year at 1.5267, the pair has struggled to gain any real momentum backed by the bulls. Now the currency pair faces the challenge of resistance once again in the 1.5784 area, making the fourth attempt from the minimum of 6 months.
If the pair can break the resistance at 1.5784 and 1.5841 in particular, there will be a technical gap of about 200 pips above waiting to be filled by the price action. On the way there will be resistance 1.5905 and 1.5958 additional, but the sum of all factors creates a strong argument for higher prices to come, despite the additional resistance.
On the way down the pair will also meet a full support. Weekly pivot point is placed at 1.5649; monthly pivot is 1.5581 and 1.5532 S1 weekly.
Therefore, we recommend buying 1.5546 with targets towards the nearest resistance of 1.5760.
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