Forex

GBPUSD-GBP saw a test and failure at the 1.9957/71 zone, its Jan 30’08 high/daily 200 ema on Wednesday following an intra day high of 1.9970.This weakness is coming on the back of a sharp run to the upside on Tuesday. While the said resistance zone holds, risks of lower prices can not be ruled. In such a case, its Feb 14’08 high at 1.9736 will be aimed at before the 1.9653/23,its Aug 17’07 high/.50 Ret (1.8091-2.1160 rally)/Jun 08’07 low and then the 1.9507/1.9481 zone, its Weekly 100 ema/Jan 11’08 low. Below there will expose the 1.9335/63, its Jan 22’08/Feb 20’08 lows. In order to resume its recovery off the 1.9363 low,a convincing break above the 1.9957/71 zone is required by the pair to bring additional upside gains towards the 1.2000 level, its psycho resistance accompanied by the 2.0112 level, its double bottom price objective. The daily stochastics remains supportive of this view though in an overbought zone. All in all, although the pair’s corrective recovery remains alive, a clean penetration of the 1.9957/71 zone is needed to trigger that recovery.


Support Comments
1.9753 Dec 24’07 low
1.9653/23 Aug 17’07 high/.50 Ret (1.8091-2.1160 rally)/Jun 08’07 low
1.9507/1.9481 Weekly 100 ema/Jan 11’08 low
1.9335/63 Jan 22’08/Feb 20’08 lows

Resistance Comments
1.9878 Sept 18’07 low
1.9957/71 Jan 30’08/daily 200 ema
1.2000 Psycho resistance
2.0112 Double Bottom Price Objective

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