Forex Technical Update August 16, 2010
GBP/USD Forming a Double Bottom
- 1H and Daily: The GBP/USD appears to be forming a double bottom in the first trading session of the week. If the market can successfully break above 1.57, it may continue to the 61.8% retracement level at 1.5820. A rally higher than that should take away the bearish outlook, and return to ranging or bullish mode.
- The daily chart shows that the bullish mode is still intact, as the RSI is above 50, and the price is rallying within a channel. If today's close is as is, there is a reversal combination.
- I think this rally is an important one to watch after last week's sharp decline.
- If tje 1.58/1.5850 area provides resistance, the bearish oulook may continue in the intermediate term. If the market breaks below the 200SMA in the daily, and the 1.55 level, it may head lower towards the 1.5110 area.
Commodity Trading Advisor
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