GBP/USD 4H Chart 11/20/2012 10:05AM EDT

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Momentum: Following up with a bottoming attempt in GBP/USD, the pair struggles to push higher away from the 1.59 handle. Instead it has been in more sideways action around the this psychological level. In the 4H chart, it should be noted that the RSI is at 60, below which bearish momentum is maintained. If price can push back below a support pivot at 1.5886, cable is likely refocused on the support of the “bottom” in the 1.5827-1.5845 area.

As far as upside and downside targets, here is the assessment copied from the previous update:

Fibonacci retracement targets: A near-term bullish target is the 1.5960, 38.2% retracement level which is at some support pivots from early November consolidation. The 1.60 psychological handle is coincident with the 50% retracement level. Finally the 61.8% retracement of 1.6041 is also reinforced by a resistance pivot, and near the declining trendline noted above.

Downside risk: to the downside, there is still some room before a major support cluster around 1.5880-1.59. This area includes a previous support/resistance pivot, 50% retracement of the June-September rally, and a rising trendline from the June low of 1.5265.”