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Forex: GBP/USD: Consolidating around 1.5600

Thu, Jul 29 2010, 06:50 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) - Pound's rally from 1.5120 area last week extended yesterday to a fresh 5-month high at 1.5635, although the pair lost strength and has remained trading around 1.5600 during the last trading sessions.

At the moment, the Sterling moves below 1.5630/40 resistance area (session high/Jul 28 high), and above here, at 1.5685 (Feb 18 high) and 1.5815 (Feb 17 high). On the downside, support levels lie at 1.5585 (session low), and below here, 1.5545 (Jul 28 low) and 1.5520 (Jul 26 high).

The pair remains slightly biased to the upside while above 1.5592, according to Ian Coleman, technical analyst at FXstreet.com: "We had 15634 as our target and the pair made 15637 before forming a doji on the daily chart. We have not turned yet, as expected, and the bias is still slightly to the upside. We need to close below 15592 to confirm that the move down has started."

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