Monday March 8, 2010 - 17:56:22 GMT
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FXTimes: Daily Technical Update GBP/USD Near-term Outlook
GBP/USD Near-term Outlook
- 4H: Looking at the GBP/USD in the near-term, we
see that the market is in a correction from the previous downswing. So
far, some resistance at 50% and test of SMA 50, as well as stochastic
crossover in the overbought zone.
- The market can still continue to rally to 61.8% reracement area, or
even 153.50 to test the previous powerline. However, we can see that
the market is already testing a minor powerline at 1.52. So let’s
stalking this current near-term decline and see what scenarios might
arise.
- 1H: Looking at the 1H chart, we see that indeed
there is a retracement from correction swing of last Friday. Price
action broke below a powerline near the 38.2% retracement, and suggests
further decline. The stochastic is also declnining from the overbought
area.
- An important area to watch is the channel support, confluent to the
area between 61.8% and 78.6% retracement. Note that this is also the
resistance of the Friday consolidation before the upswing.
- So if the Pound bears are stroung enought to drive this market
further below this 1.5060 area, we might continue a decline in the
intermediate term to 1.45. (Refer to Weekly Technical Update 3.5.2010)
- Otherwise, there are still some short-term rally possible, and
looking at the 4H time-frame, we know the next area of resistance is
near 1.53.
Fan Yang
Currency Analyst
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
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or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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