Yesterday, GBPUSD closed below its uptrend line from March 2009—very bad news indeed, especially since the bounce from there looks sickly.
The weekly chart shows GBPUSD at the bottom of its symmetrical triangle. The high of this triangle was 1.7045 in August (also the 2005 low). Another rise to this price would likely result in another rebuff. However, we’re nowhere near there. I wouldn’t rule out a rise to the top of the weekly triangle near 1.65 but currently it’s struggling with 1.5979 so that seems a long ways away. A break below the triangle positions it for another move down. The October ’09 low of 1.5708 seems within easy reach. Sexier targets are 1.5524 and 1.5460.
Support levels:
1.5851 (yesterday’s low)
1.5833 (December low)
1.5708 (Oct. ’09 low)
1.5524 (polarity)
Resistance levels:
1.5979 (Yesterday’s high)
1.6000 (round number; psychological)
1.6085/90 (uptrend line from March ’09 and major support)
1.6262/72 (Nov. ’09 lows)
Here’s the weekly chart:
© 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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