GBPUSD—rally

Following the positive divergence on the hourly chart on Friday, the pair has managed a rally which so far has only reached a high of 1.5013. The pair has also formed what's known as an ascending triangle from which a breakout is usually upward. However, GBPUSD is generally weak. My short from Friday at 1.5153 is still on and is profit stopped at 1.5052.

If this rally can get any legs, one would expect to see the pair break 1.5052 in a sassy, confident fashion. I'm a bit skeptical but will follow the market and reverse, if need be, at that point.

Resistance is at 1.5013, 1.5033, 1.5120, 1.5153 (strong), 1.5254, 1.5328, and 1.5382. Support is at 1.4964, 1.4932, 1.4873, 1.4853 (strong), 1.4873 and 1.4814.

Here's the one-hour 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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