GBPUSD: Recovery Higher Shifts Focus To The 1.6468 Level
GBPUSD- The pair recovered strongly higher from its short term low at 1.5708 the past week breaking through its Sept 30’09 high at 1.6124 and its daily major emas to close higher at 1.6356 on Friday. This is the pair’s strongest weekly close since Jun’09. With its declines started at the 1.7041 level (YTD high) halted, GBP now looks to head further higher targeting a confluence of resistance levels (its Sept 23’09 high/SH falling trendline) located at the 1.6468/66. That zone is significant and may turn off the pair on testing it as signs of price hesitation were seen ahead of that zone on Friday . However, if a violation of there occurs, scope for further upside gains towards the 1.6740 level, its Sept 11’09 high could be seen with an eventual loss of there setting the stage for a retarget of its YTD high at 1.7041. A break and hold above that level will be required to resume its medium term uptrend currently on hold. Its weekly RSI remains supportive of this view as it is bullish and pointing higher. On the other hand, on any pullback from its current price level, the 1.6124 level should reverse roles and provide support . Further down, its psycho level at 1.6000 comes in as next support ahead of its Oct 13’09 low at 1.5708 and then the 1.5500 level, its psycho level. On the whole, having rallied strongly the past week, risk remains to the upside but GBP must break and hold above key resistance zone at 1.6468/66 to clear the way for further recovery.
This is an excerpt from FXT Technical Strategist Plus, a 7-currency model analysis. Take A One Week Free Trial here www.fxtechstrategy.com
This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are those of FXTechstrategy.com own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which FXTechstrategy.com incurs any responsibility. FXTstrategy.com does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report
