FX.co ★ GBP/USD Technical Correction, Janaury 20, 2011 (Daily Strategy)

GBP/USD

There exists a serious possibility for a corrective wave of downwards movements, which can technically move as far down was the low support levels of 1.5590 United States dollars for one British pound.

while failing to breach the resistance level 1.6050, leads us to the conclusion that the upwards movement is over and a technical correction is about to begin. Any upwards movement to 1.6040 can be utilized to form a new sell position. Further, a breach of the nearby 1.5900 support level will back the expected downwards movement.