By Russell Glaser – The Cable is testing the 61.8% Fibonacci retracement level from the August 2009 high.
Following this week’s bullish movement in the GBP/USD, the pair has broken past a previous resistance level at 1.5820, which has now become a near term support level (S1). The GBP/USD is currently testing the 61.8% Fibonacci retracement level (1.5960). This is a retracement from the August 2009 high to this year’s low.
The GBP/USD failed to breach this resistance level both yesterday and today. A move above this line would target the short term resistance at 1.6065 (R2), followed by the January high at 1.6450 (R3).
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