FX.co ★ GBP/USD. Forecast for October 11, 2012

The British pound has been developing rather freely; it is less dependent on market. Technically, an upturn is forming. On the H4 the price drop stopped at the level of 138.2% of Fibonacci. If a breakdown of 1.6035 level take place, then the level of 1.6067 may be reached; it is the area where the lows of September 13 and October 3 coincide as well as indicator lines. If it happens, then a medium-term upward move will develop higher 1.6300.
In case of yesterday’s low is broken down the following targets opens 1.5947, 1.5925, and 1.5901. This scenario is highly probable as German Chancellor Angela Merkel had blocked merger of major aircraft manufacturers British BAE Systems and pan-European corporation EADS. The deal had been giving optimism to British investors for three weeks.