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20.03.2012 12:20 PM
GBP/USD Intraday Technical Analysis

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The spot rate is presently testing the upper limit of the medium term bearish channel in the point 1.5910 and is likely to initiate a decline. However, if these levels are broken down, the significant potential will be revealed and  a bullish trend will be initiated.

Technical indicators provide signals for SELL-deals supporting the assumption of a decline that is expected to take place soon. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the beginning of a violent movement.

Proceeding from the previous events, the market indicates a bullish opportunity as soon as the spot rate will has broken its resistance in 1.5910 with its 1st objectives seen at 1.597 and 1.5990 levels. A breakdown in the point 1.5890 will reverse  this scenario.

 

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