GBP/USD Technical Analysis October 21, 2011

The GBP/USD pair fell on Thursday for the early hours of the session, only to bounce back upwards form the 1.57 level yet again. This shows just how resilient this area is as support, and that it should be respected. However, it is difficult to be aware of any major reason to buy this pair for a long-term trade at the moment. After all, it is a “risk on” trade, and the headline risks are far too great to put much faith in the markets at the moment. We think it is probably more likely that the 1.5850 area holds as resistance, and the 1.57 level holds as support. With this in mind, we are range trading it for quick scalps at this point.