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04.05.2012 10:25 AM
GBP/USD Intraday Technical Analysis

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At the moment the spot rate is testing the upper limit of its medium term bearish channel in.6210 and is expected to decline. However, a breakdown of these levels will reveal significant potential resulting in a violent bullish trend.

Technical indicators provide buy-signals but as long as the resistance level is unbroken, the assumption of a decline is relevant. 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 its resistance level 1.6210 with 1st targets seen at 1.6270 and 1.6290 level. A break through 1.6190 will cancel this scenario.

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