GBPUSD: Although a recovery higher Wednesday saw the pair reverse its intra day losses to close at 1.3875,its broader bias remains to the downside. This view remains valid while GBP continues to trade below its Feb 02’09 low at 1.4052 and the 1.4137 level, its Feb 12’09 low and also maintains within its declining channel. In such a case, threats for further declines are seen towards its swing low at the 1.3504 level where a decisive violation will activate the resumption of its longer term downtrend towards the 1.2856 level, its Sept’85 low. On the other hand, building on its Wednesday recovery will mean risks for additional upmove towards its Feb 02’09 low at 1.4052 and the 1.4137 level, its Feb 12’09 low with a clean break though there propelling the pair higher towards the 1.4305 level, its Mar 06’09 high followed by the 1.4662 level, representing its Feb 23’09 high, We envisage the two earlier mentioned resistance levels should force the pair back down if tested. All in all, despite the price hesitation highlighted above,GBP retains its broader downside tone.
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