British Pound GBP/USD Testing Long Term 76.4% Support
Currencies / British Pound Jun 21, 2010 - 02:54 AM GMTThe downtrend in GBP/USD tested a long term 76.4% retracement level, where the initial reaction has been positive, though muted so far. There are certain levels on the Daily chart that must be negotiated before we are able to look for a better recovery phase.
The FX Trader’s view
WEEKLY CHART: The last downleg has seen the 76.4% pullback level tested, where we look to see if support can emerge. Certain bull signals are not yet in place on the Daily chart… |
|
DAILY CHART: The market remains supported by the 76.4% pullback level, initial resistance found at the 1.4780 01-Mar low at the start of Jun. The slightly higher 1.4895 23.6% recovery level of the whole fall from 1.7042 Aug-09 high offers first interesting resistance though – a close through this would be an initial positive sign. However, the higher bear channel top projection which currently coincides with prior 1.5125 lows offers the most important resistance here, with a breach of this to suggest a better recovery phase was underway. Meanwhile in the Commodity Specialist Guide we are keeping in mind a lower projection just above 1.3800, a 2.618 swing off prior Oct/Nov-09 upleg. |
Mark Sturdy
John Lewis
Seven Days Ahead
Be sure to sign up for and receive these articles automatically at Market Updates
Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.
© 2010 Copyright Seven Days Ahead - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
Seven Days Ahead Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.