William Moore, Technical Markets Strategist at RBS, suggested “A significant day yesterday for GBP/USD as the trend line of support that had been propping up price action since Jun ’12 was broken through the 1.6041 level. This implies two things; the first that this morphs into a good fade level if the market manages to rally back there today and the second is that the bias turns heavy down to the potential supports/targets at 1.5829 & 1.5606”.
GBP/USD is now advancing 0.11% at 1.6024
Next resistance levels line up at 1.6070 (MA10d) ahead of 1.6126 (MA21d) and finally 1.6156 (high Jan.14).
On the other hand, a violation of 1.5971 (Lower Bollinger) would expose 1.5962 (low Nov.28) and then 1.5920 (low Nov.22).