British Pound vs US Dollar Continues Climb from Downside Retracement

<p>Price action on GBP/USD (daily chart) as of October 16, 2012, has tentatively continued its steady climb back up from a substantial pullback to the […]</p>

Price action on GBP/USD (daily chart) as of October 16, 2012, has tentatively continued its steady climb back up from a substantial pullback to the key 1.6000 support area, which was also around the 38.2% Fibonacci retracement of the most recent major bullish trend (from the August 1.5500 region to the September 1.6300 region).

After this pullback/retracement bottomed out around the 1.6000 area early last week, the past several trading days have seen a net bullish move back up towards the 1.6150 resistance. With a continuation of its bullish stance after the pullback, and if the price is able to stay above the important 1.6000 support, GBP/USD could be poised short-term for yet another retest of the 1.6300 area resistance high that was established in April and retested in September. To the downside, any failure to stay above 1.6000 could be the bearish trigger that prompts a potential downside move towards 1.5750 support.

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