British pound vs US dollar stalls at triple top resistance

<p>GBP/USD (daily chart) as of December 20, 2012, has stalled at a rough triple top resistance around the 1.6300 price region. The first top was […]</p>

GBP/USD (daily chart) as of December 20, 2012, has stalled at a rough triple top resistance around the 1.6300 price region. The first top was established in April, then re-tested and respected in September, and finally re-tested and respected once again yesterday with a slight shooting star candle retreat.

Since yesterday, the price has made up for some of that retreat, with the price once again advancing to approach the 1.6300 level. This occurs within the context of a strong overall bullish trend extending back to the June 1.5266 low. It also occurs in the midst of a steep bullish trend that has been in place for the last two weeks.

If the pair is able to further this bullish trend with a significant breakout above 1.6300, which would confirm an uptrend continuation, the price could move towards further potential resistance around the 1.6475-1.6500 price region. If the price once again respects the 1.6300 level with a retreat to the downside, key potential support on a bearish correction resides around the important 1.6150 price region.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.