GBPUSD : Pressured To The Downside
GBPUSD- The pair could be on its way to a third-day of weakness as its loss of upside momentum at the 1.6842 level, its Nov 09'09 high continues to put it under pressure. It was seen in early trading today heading towards ST rising trendline currently at 1.6466 where a temporary halt is envisaged but if that snaps, lower prices could develop towards its strong supports at the 1.6249/60 area, its Oct 26'09/Nov 03'09 lows. We believe that level should provide a wedge and turn the pair back up. This zone is very crucial in the pair's recovery off the 1.5706 level, its Nov 13'09 low as it must hold to preserve that recovery but if a decisive break through there occurs, we expect GBP to weaken further towards its Oct 30'09 high at 1.6124 level and then the 1.5706 level. Its daily studies are both bearish and pointing lower supporting this view. To the topside, the pair must break back above the 1.6740 and the 1.6842 levels to reverse its current downside threats and bring the 1.7041 level where its YTD high is standing with a penetration of there triggering the resumption of its medium term uptrend now on hold towards its .50 Ret (2.1160-1.3501)at 1.7314. On the whole, GBP remains pressured having collapsed off the 1.6842 level.
Daily Chart: GBPUSD