Tue, 17 May 2011 01:45:00 +0200

Forex: GBP/USD likely to dip to 1.6164 – FXTechstrategy

FXstreet.com (California) - GBP/USD is currently trading in a tight 25-pip range between 1.6209 and 1.6184 amidst low levels of liquidity. Still under pressure after the rejection of yesterday’s rally into the 1.6234 resistance level, bears seem likely to push the pair lower. At the time of writing, the GBP/USD trades around 1.6192, in virtually the same place it began the Asian session (1.6189).

“The pair may be struggling to trigger a recovery but as long as the 1.6268 level, its May 09’2011 low and the 1.6378 level, its May 12’2011 high cap gains, GBP is likely to turn back lower towards the 1.6164 level, its April 18’2011 low,” explains Mohammed Isah, Analyst at FXTechstrategy.

Mr. Isah recognizes support at 1.6000 (psychological level), and below there 1.5935 (March 28 high). To the upside, potential resistance is identified at 1.6269 (May 9 low) and 1.6378 (May 12 high).

Technical Analysis (2011-05-16 23:15 GMT)
GBP/USD 1.6198/1.62008 - O: 1.6351 H: 1.6356 L: 1.6346 C: 1.6347
Trend	R3: 1.6285
	R2: 1.6245
	R1: 1.6204
	S1: 1.6121
	S2: 1.6161
	S3: 1.6202