British Pound vs US Dollar Pulls Back and Rebounds off Key Support

<p>GBP/USD (daily chart) as of December 10, 2012 has once again rebounded off 1.6000 support after hitting a high near 1.6150 area resistance last week […]</p>

GBP/USD (daily chart) as of December 10, 2012 has once again rebounded off 1.6000 support after hitting a high near 1.6150 area resistance last week and pulling back. This bullish rebound occurs after price broke out two weeks ago above the same 1.6000 level as well as a downtrend resistance line extending back to the September 1.6300 area high. Price has just turned at the 1.6000 level with a clear hammer candle pattern, which has provided more support for the upside rebound. Also providing some additional measure of support confluence has been the 50-day moving average. In the event that bullish momentum continues off the rebound to breakout above the key 1.6150 level, price could move towards a re-test of potential resistance around the important 1.6300 level, which was first established in April and re-tested in September.

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