Yesterday the GBPUSD formed a Bullish Rejection candle. This rejection candle was formed at an area where price had found resistance many times in the past. Once price had broken this resistance and moved higher, price retraced back lower to now find new support at the old resistance area.
Price has moved slightly higher form the bullish rejection candle and if it can continue this move resistance comes in around 1.5880. If price moves back lower it will have to break the solid support area that is holding nicely at this stage.
GBPUSD DAILY CHART – AUG 30 2012