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 letâ€™s
stalking this current near-term decline and see what scenarios might
- 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
- 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
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