GBPUSD: Eyes The 1.5440 Level And Beyond.
GBPUSD: Although another strong resistance lies at the 1.5373 level, its Jan 08’09 high, an invalidation of there is expected to activate a run at the 1.5440 level where its 200 daily ema is located. Though this view is now tempered with a corrective decline on Monday, GBP remains biased to the upside while holding firmly above its rising trendline. Above the 1.5440 level will set the stage for a move towards the 1.5724 level, its Dec 17’09 high and possibly higher. Weekly studies are supportive of this view. On the other hand, supports are located at the 1.5068 level, representing its April 16’09 high and the 1.4836 level, its May 04 09 low and then its April 27’09 low at 1.4517 level. Despite this downside scenario, we expect the 1.5068 level to initially provide support on any pullback thereby turning the pair higher again. All in all, with the continuation of its recovery off the 1.3655 level triggered, GBP should accelerate further higher.
1.5066 April 16’09 high
1.4836 May 04 09 low
1.4517 April 27’09 low
1.5373 Jan 08’09 high
1.5722 Dec 17’08 high
1.6671 Oct 30,08 high
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