British Pound vs US Dollar Rebounds Off Key Support Confluence

<p>GBP/USD (daily chart) as of November 19, 2012 has rebounded to the upside off a key confluence of support factors that includes both the 200-day […]</p>

GBP/USD (daily chart) as of November 19, 2012 has rebounded to the upside off a key confluence of support factors that includes both the 200-day moving average as well as a bullish support trend line extending back to the June 1.5265 area low. For the time being, this bounce has preserved the overall bullish trend by respecting the strong support confluence, and has tentatively pushed back above 1.5900 resistance. If price is able to stay above the support provided by the moving average and the uptrend line, GBP/USD could be positioned to sustain the bullish trend that has been in place for almost half a year. In this event, the major potential resistance objectives to the upside include the key 1.6000 and 1.6150 levels. To the downside, any subsequent breakdown of this support confluence could find further potential support around the 1.5750 and then 1.5600 levels.

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