| GBPUSD 05-03-10 |
GBPUSD
Well the BoE meeting yesterday was a complete snooze, and the prospect of NFPs later means UK PPI is also unlikely to have much bearing on the currency. Instead, we take our cue from thefact that GBPUSD’s rally yesterday was unable to overcome 1.5140 resistance, which is highly suggestive that buying momentum does not have the legs to sustain a trend reversal just yet.
Furthermore, the breach of the lower side of our rising wedge pattern discussed yesterday occurred at 1.5045 so we now expect a continuation of the 6 week downtrend, and aim for a re-visit of 1.4900 down below –our target is admittedly a little on the conservative side due to support expected just below there at1.4857 (61.8% fibonacci retracement of 1.3505-1.7043).
The back side of the rising wedge now comes in at 1.5100 which is likely to cap any rallies, then the upper bound of the current 6 week downtrend at 1.5210 presents a major challenge.
Well the BoE meeting yesterday was a complete snooze, and the prospect of NFPs later means UK PPI is also unlikely to have much bearing on the currency. Instead, we take our cue from thefact that GBPUSD’s rally yesterday was unable to overcome 1.5140 resistance, which is highly suggestive that buying momentum does not have the legs to sustain a trend reversal just yet.
Furthermore, the breach of the lower side of our rising wedge pattern discussed yesterday occurred at 1.5045 so we now expect a continuation of the 6 week downtrend, and aim for a re-visit of 1.4900 down below –our target is admittedly a little on the conservative side due to support expected just below there at1.4857 (61.8% fibonacci retracement of 1.3505-1.7043).
The back side of the rising wedge now comes in at 1.5100 which is likely to cap any rallies, then the upper bound of the current 6 week downtrend at 1.5210 presents a major challenge.
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