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15.05.2012 09:58 AM
GBP/USD Intraday Technical Analysis

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The spot rate is approching the upper limit of its medium term bearish channel at 1.6150 and is likley to decline. However, a breakdown of these levels will release significant potential and initiate a violent bullish trend.

Technical indicators provide sellers signals and as long as the resistance level is unbroken, the pair is very likely to decline. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.6150 with 1st objectives seen at 1.6210 and 1.6230. In case the level 1.6130 is broken through, the proposed scenario will be cancelled.

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