GBPUSD: Downside Pressure With Potential For Corrective Bounce.
GBPUSD: Although a fourth day of downside losses was recorded at the end of Monday trading session, the formation of a hammer candle now suggests that a temporary bottom may be forming. In such a case, a follow through higher on the mentioned hammer must occur to trigger further upmove towards the 1.4305 level, its Mar 06’09 low with a cut through there setting the stage for additional upside gains towards the 1.4662 level, its Feb 23’09 high. Above there must be traded to turn focus to its Jan 16’09/Feb 09’09 highs at 1.4981/86 and possibly higher. On the other hand, while the 1.4662 level remains unbroken, risks exist for price declines towards the 1.3845 level, its Mar 18’09 low and then the 1.3655 level, its Mar 11’09 low .Daily stochastics and RSI remain bearish as well, pointing towards further weakness. All in all, the pair’s current downside weakness remains consistent with its medium to longer term bearish outlook.
Support Comments
1.4137 Feb 12’09 low
1.3845 Mar 18’09 low
1.3655 Mar 11’09 low
Resistance Comments
1.4305 Mar 06’09 high
1.4662 Feb 23’09 high
1.4981/86 Jan 16’09/Feb 09’09 highs
Daily Chart: GBPUSD
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