Still Limited Within Its Daily Rising Channel.
GBPUSD- Although failure at 1.5066 high pushed GBP to the downside on Thursday and Friday, it still posted a higher close at 1.4795, forming a shooting star candle. We maintain that while the pair continues to hold within its daily rising channel and above its key support at the 1.4662 level, its Feb 23’09 high, a return above its Jan 16’09/Feb 09’09 highs at 1.4981/86 is expected with the next upside target coming in at the 1.5066 level, its April 16’09 high and then the 1.5374 level, its Jan 08’09 high. The weekly stochastics is positive and advancing suggesting further strength. The risk to this analysis remains the highlighted shooting candle pattern. However, if the pair follows through on its shooting star candle formation and pushes below the mentioned rising channel then the 1.4662 level will be targeted with a break and close below there putting it in position to head towards the 1.4305 level, its Mar 06’09 high and later the 1.4111 level, its Mar 30’09 high. All in all, with its daily rising channel still valid and holding above the 1.4662 level, GBP continues to maintain its nearer term upside outlook.
Directional Bias:
Nearer Term -Bullish
Short Term –Bearish
Medium Term –Bearish
Performance in %:
Past Week:: 1.15%
past Month: +0.31%
Past Quarter: -1.86%
Year To Date:: 01.28%
Weekly Range:
High -1.5066
Low -1.4603
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