Pound May Bounce Following Neckline Test

Published September 22nd, 2009 - 01:05 GMT
Al Bawaba
Al Bawaba

The GBPUSD tested head and shoulders neckline support to begin the week but closed the day nearly 90 pips off its low.  While a break of the support line is probable eventually (the maturity of the h&s pattern), the long lower wick and small body of the candle suggests potential for a sizeable bounce in the meantime.  1.6285/1.6320 is resistance.