8 January 2010
GBP/USD: technical analysis
After the breakage through the support at 1.5940 the “bears” had enough power to decrease the price to 1.5890/95 only. Having exercised this level the price started its growth and is already checking up the resistance at 1.6030/30 for endurance. The indicators demonstrate the rapid mood alternation showing the reverse upward, and that encourages the apprehensions of the start of increase for the midterm period. Meanwhile, as mentioned before, the “bulls” scenario can be considered at the breakage through the resistance at 1.6250/60 only; the price has to break through the very powerful resistance range within 1.6030-1.6070/80 in the meantime. If only there’s the increase higher than this obstacle the “bulls” claim determined with the observed growth may be considered seriously. The probability of the comeback to decrease still stays high enough that’s why the predictions of the previous analysis maintain their relevance – it’s reasonable to expect the lowering till the support at 1.5860/50; though in case of the breakage through the latter the arguments will be to predict the downfall till 1.5810/00 with possible expansion of the descendant trend for the midterm prospect with the first target of decrease to 1.5700.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst
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