GBP/USD Daily Chart 8/28/2012 8:25AM EDT
The GBP/USD is finding some support so far from a rising trendline that has been holding August price action so far, seen in the 4H chart. The previous update noted support around the 1.5775 level. A more recent pivot was at 1.5765. These levels (also previously broken ascending triangle resistance) were cracked, with the GBP/USD touching 1.5750 before bouncing back to test the 1.58 handle heading into the 8/28 US session.
It was also noted that if the RSI holds above 40 and pushes above 60, momentum is likely to reflect bullish continuation with focus first back to the 1.59/1.5910 area. This bullish continuation scenario should first see the market clear the 1.5820 pivot level.
Bearish Breakout Scenario:
If the market holds below the 1.5820 pivot, and falls back below 1.5750, it suggests that the GBP/USD is in further corrective decline, exposing the 1.56 handle where price is likely going to meet the rising channel support seen in the daily chart.
GBP/USD day Chart 8/28/2012 8:30AM EDT