Gbp/usd 12/26/11

The GBP/USD has been moving in a channel between 1.54 and 1.58. On Friday it reached the resistance at 1.58 and it might slide down to the support at 1.54 again. It also broke the 20 EMA on the daily chart, which is another negative signal for the pair. However, I believe that the direction is depended on the strength of the USD and the US stock markets.

hi.
so what do you think the direction will be?..I think it will bearish downward…what do you think?

Basically I think that the major currencies depend on the direction of the USD, which is influenced by Wall Street. As long as the US stock markets continue rising, I believe that the USD will get weaker against most of the currencies, including the GBP.