FX.co ★ GBP/USD Fractal 1.5956 - For August 31, 2012 (Daily Strategy)

The pound has a bullish outlook against the dollar in the short term, trading between 1.5910 and 1.5770, exceeding the 1.59. The currency can add upward force to the pair, although the indicators show depletion in the upward and overbought signal. So, I prefer to go in the direction of the correction to find trapped in a resistance level. Given that now everyone is wondering whether the Fed will implement a plan to stimulate the economy by buying cash bonds, which would, if carried out, result in a huge boost to equity markets, particularly currencies.
Therefore, we recommend selling at the resistance of 1.5956 (fractal) with objectives to 1.5801, this serves as a part of the downward correction.
Our outlook remains bullish above 1.5750.

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