GBPUSD—at .618 retracement

With a high of 1.5958, cable has almost reached its .618 retracement of the move down from 1.7043 to 1.4228 (1.5968). Sellers will come in here so a small short might be in order. The steep level of ascent will be difficult to maintain.

The next resistance level would be the round number of 1.6000 and then the Feb. '10 high of 1.6070. Support is at 1.5872, 1.5701, and 1.5552.

Here's the daily 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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