Sat, 06th of June, 2009

By Setyo Wibowo (analyst@fxinstructor.com)

GBPUSD Outlook

The GBPUSD had significant bearish momentum yesterday. The pair bottomed at 1.5940 and closed at 1.5973. On weekly chart below, we can see that this week movement formed a “shooting star” candlestick pattern which technically a bearish formation. We also can see that the upper shadow of the “shooting star” ended at important (strong) resistance around 1.6670 area (June 03rd 2009 and November 30th 2008 highs) before slightly fell to the downside. At the same time, weekly CCI in overbought area and heading down suggesting a potential downside pressure. For the upcoming week, any consistent movement below 1.5950 area ( 23.6% Fibo retracement of 1.3886 – 1.6660) should support the bearish scenario and trigger further bearish momentum towards 1.5520 area. Have a nice weekend and see you guys next week :)