| GBPUSD chart 09-03-10 |
GBPUSD
A great big head-fake from GBPUSD yesterday, as the breach of the 6 week downtrend channel at 1.5160 was completely reversed in the afternoon session, and even went so far as breaching the lower bound of the nascent uptrend.
We still believe there are decent arguments for a bullish correction from here however; firstly, the hammer candlestick on the weekly chart which is suggestive of a reversal of the prevailing downtrend, secondly our 1 hour stochastic oscillator has crossed upwards from deeply oversold territory, and thirdly the decent buying interest around 1.4975 looks to be providing a near-term floor to sell-offs.
Nevertheless, expect resistance levels above here to come in the form of 1.5100 downtrend channel resistance, the back side of the former uptrend at 1.5125, then the psychologically important 1.5200 level where we failed yesterday.
A great big head-fake from GBPUSD yesterday, as the breach of the 6 week downtrend channel at 1.5160 was completely reversed in the afternoon session, and even went so far as breaching the lower bound of the nascent uptrend.
We still believe there are decent arguments for a bullish correction from here however; firstly, the hammer candlestick on the weekly chart which is suggestive of a reversal of the prevailing downtrend, secondly our 1 hour stochastic oscillator has crossed upwards from deeply oversold territory, and thirdly the decent buying interest around 1.4975 looks to be providing a near-term floor to sell-offs.
Nevertheless, expect resistance levels above here to come in the form of 1.5100 downtrend channel resistance, the back side of the former uptrend at 1.5125, then the psychologically important 1.5200 level where we failed yesterday.
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