GBPUSD—daily support and resistance

GBPUSD is still in an uptrend with intact trend lines from both January and March of 2009 as you can see on the daily chart. This means support lies at those lines. The pair has closed below its 200 SMA (simple moving average, currently at 1.6206) on two of the prior three days but has poked its nose above it this morning. The last few daily candles have upper shadows, hinting at price rejection, but this is not conclusive since the candles are also of a good size.

It’s currently at tough resistance with a convergence of the daily 200 SMA, 34 EMA, polarity, and a round number. One could short here (currently 1.6236) but with tight stops.

Support lies at:

1.6025 (3/09 uptrend line and polarity)
1.5723 (8/09 downtrend line and prior support)
1.4724 (1/09 uptrend line)

Resistance is at:

1.6196/1.6200/1.6206 (round number, 200 SMA, 34 EMA, polarity, 1/10 downtrend line)
1.6200 (round number, polarity)
1.6268/84 (weekly highs to date)
1.6300/6400 (round number)
1.6461 (Jan. 19 high)



© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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