| GBPUSD 08-03-10 |
GBPUSD
It’s been third time lucky for GBPUSD which has finally managed to burst through 1.5140 resistance after the risk rally initiated on Friday. Admittedly, the move negates our rising wedge scenario suggested last week, coming within a whisker of 1.5200 resistance, but more significantly appearing to have breached the 6 week downtrend channel at 1.5160. If GBPUSD holds above this trendline, it could be the first sign of a reversal coming for the long suffering pair.
The 1 week uptrend channel frames our short term view; with good selling interest expected to come in at the upper bound of 1.5278 (also coinciding with the 50.0% fibonacci level at 1.5274), and the lower bound at 1.5070 providing support.
The 14-day RSI has crept back above the 30 level to 38 so far, which also suggests that bears are taking some of their pressure off the market, so we focus our sights on the levels above at 1.5350 and 1.5615 in extension.
It’s been third time lucky for GBPUSD which has finally managed to burst through 1.5140 resistance after the risk rally initiated on Friday. Admittedly, the move negates our rising wedge scenario suggested last week, coming within a whisker of 1.5200 resistance, but more significantly appearing to have breached the 6 week downtrend channel at 1.5160. If GBPUSD holds above this trendline, it could be the first sign of a reversal coming for the long suffering pair.
The 1 week uptrend channel frames our short term view; with good selling interest expected to come in at the upper bound of 1.5278 (also coinciding with the 50.0% fibonacci level at 1.5274), and the lower bound at 1.5070 providing support.
The 14-day RSI has crept back above the 30 level to 38 so far, which also suggests that bears are taking some of their pressure off the market, so we focus our sights on the levels above at 1.5350 and 1.5615 in extension.
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