Thursday, December 31, 2009

GBP/USD Rushed to The Upside Steeply Yesterday

The pair rushed to the upside steeply yesterday to continue the upside correction reaching 61.8% while trading above the support level for the descending channel.

Momentum indicators are providing negative signals supporting the strength of the correction level and therefore we expect a downside intraday move today targeting initially 1.5975 and then 1.5920 and require 1.6155 to remain intact with four hour closing.

The trading range for today is among the key support at 1.5830 and the key resistance at 1.6255.

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.

Support 1.6035 1.5975 1.5920 1.5830 1.5805

Resistance 1.6090 1.6125 1.6155 1.6235 1.6255

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