Forex Technical Update June 25, 2010 GBP/USD: Pullback After a Double Top
- 4H and 1H: The GBP/USD pair has been strong in June. In fact it has been rallying since the middle of May, for a month now. This week, the pair showed some signs of finally topping.
- The 4H chart shows the rally stopped at 1.50. The daily chart below shows that the 1.50 level was near the 61.8% retracement of a downswing that started in April. A swing projection to 1.42 is suggested. A more aggressive swing projection brings the market to 1.37 area.
- This bearish outlook however is premature, and pending reversal action in the short-term.
- Looking at the 1H chart, we see that the market did make a double top the second half of this week. the base was at 1.4930, which was broken. After declining to 1.4860, the market rallied. This can be a pullback.
- At the moment the pullback is at 61.8% retracement level and seems to be stalling. A decline from here should see a swing towards 1.4680 (50% retracement level). It may go to 1.46 the 61.8% retracement.
Fan Yang Currency Analyst Commodity Trading Advisor
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