5 January 2010
GBP/USD: technical analysis
After the resistance’s exercise at 1.6250/40 the price has come back downward and resides at 1.6070/80 now. As already mentioned in the previous commentary the failure of the breakage through the resistance of 1.6250/60 together with the return downward with the fixation lower than 1.6210/00 will signal the high probability of the descendant trend recovery. The current breakdown speaks well for the confirmation of these predictions. Nevertheless, the endurance of the support at 1.6070-1.6030 still blunts the attack of the “bears”. If this obstacle is overcome the expectance of the supports’ exercise at 1.5940 and further at 1.5850/30 will become reasonable. The “bulls” scenario of development will become obvious in case of the breakage through the resistance at 1.6250/60 only.
The trades’ fixation lower than 1.6030 will reason the sales at this pair with the target at 1.5950/40, and for the aggressive trading – till the support at 1.5860/50.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst
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