GBP/USD Technical Analysis October 31, 2011

The GBP/USD market rose again on Friday as traders continue to try and sell off the Dollar. The market has found what was once the August lows in the form of the 1.61 area. The market did finish with a green candle, but the rally faded towards the end of the session, signaling a small correction may be in the cards at this point. The 1.60 below should be supportive and somewhat of a floor at this point, and as long as we stay above that area, we will be bullish and buying the cable pair on dips. The 1.6150 level has to give way on a daily close for us to think this move has real legs, but the short-term trade should be fruitful if using the pullback and buy strategy.

Written by FX Empire