07.06.201217:33 Forex Analysis & Reviews: GBP/USD Strong Resistance For June 07/2012

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The Momentum indicator is entering the 100 area indicating a possible correcion. The agency Egan-Jones has downgraded the rating from the UK, to AA- from AA; the rating agency said the rating was reviewed due to a slowdown in GDP growth and the fact that recent data on balance payment is not too positive.

On the chart above we can see the level of 1.5640 and 1.5710 as a strong resistance level; a correction will probably take place at these levels. Therefore, we recommend selling at these resistance levels with objectives seen at the 1.5450 level. On the other hand, a breakdown of the 1.5710 level will be a signal for buy-deals with objectives seen at the 1.5900 level.

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