FX.co ★ GBP/USD Sell Bellow 1.63 (Fractal) - For December 20, 2012 (Daily Strategy)

The British pound managed to reach the maximum of 1.6306. This year the pair has tried three times to overcome this level. Yesterday the third attempt was observed, but it failed. Analyzing this level of resistance, the pound is likely to have a reverse to 1.6135 fractal level, so a break below 1.62 level, will increase the probability of the fall to 1.6135.

At that level we can again buy with objectives to 1.63. So in the long term we remain bullish, but at current levels we expect a correction to the level of support. We have been bullish above the 200 day moving average periods around the 1.5850 level. Trend indicators are showing an imminent correction.

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