Bull Signal in British Pound, GBP/USD Now in Place
Currencies / British Pound Jul 09, 2010 - 05:22 AM GMTWhen we last looked at GBP/USD the chart had tested a long term 76.4% retracement level, where the initial reaction had been positive. But the required bullish signals from the Daily chart were not in place – and they are now.
The FX Specialist view
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WEEKLY CHART: The 76.4% pullback has provided good support so far, and the chart structure now suggests that, s/term dips notwithstanding, higher values can be seen. |
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DAILY CHART: The earlier breach of the 23.6% recovery level followed by recent violations of the bear channel top projection and 1.5125 area have provided a bull signal for us, in the FX Specialist Guide. S/term dips are now more likely to be temporary ahead of a further bull leg. Note first support coming from the prior 1.4780 support/resistance. A deeper slip would turn focus on the 1.4500 area. On the upside, beyond the nearby 38.2% level just above 1.5300, note the stronger resistance at 1.5635/ 1.5705, 50% (a good level in GBP sometimes) and 13-Oct low. |
Mark Sturdy
John Lewis
Seven Days Ahead
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