GBP/USD Liquidity and volatility in asian trade jan 16 2012

forex trading outlook today - GBP/USD Liquidity and volatility in asian trade jan 16 2012 ; Liquidity and volatility is relatively thin at the start of trading this Monday, with GBP/USD having traded a tight 1.5305/1.5275 range so far as it gaps lower at the weekly opening, last quoted around 1.5300.

"The GBP/USD also gapped lower at the weekly opening trading below 1.5300 and being dragged lower by the lack of confidence among investors on a European recovery anytime soon," observes Valeria Bednarik, Chief Analyst at FXstreet.com. "In the 4 hours one, RSI is flat around 30 while momentum aims slightly higher still below its midline suggesting limited recoveries for the time being; 20 SMA with a strong bearish slope lays around 1.5350 providing dynamic resistance for price."

If the bear pressure continues in the hours ahead, support levels lie at 1.5270, 1.5230 and 1.5190, while, to the upside, resistance levels lie at 1.5315, 1.5350 and 1.5385.

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