Discussion in 'Forex' started by AceTraderFX, Nov 2, 2007.

  1. Updating time : 02/11/2007 00:40 GMT

    GBP/USD - 2.0781...Cross trading in sterling dictated cable's movements y'day (esp in gbp/jpy) as cable hit another fresh multi-year high at 2.0875 in U.S. session b4 a selloff in gbp/jpy (risk aversion due to the decline in U.S. stock markets) capped sterling's upside n price subsequently fall sharply to 2.0763 (this morning's low).

    Y'day's decline fm 2.0825 indicates recent upmove has formed a temp. top there (this high was accompanied by bearish divergences on hourly oscillators) n consolidation with downside bias is seen for a correction to 2.0720/24 (50% r of 2.0565-2.0875 n 38.2% r of 2.0481-2.0875) n possibly twds 2.0689 but as hourly stochastics are likely to be in o/sold territory on such move, reckon steep fall below 2.0656 (July '07 high n abv 50% r of 2.0426-2.0875) wud not be seen today n 2.0600 shud hold, yield recovery later.

    On the upside, abv 2.0825/32 (Oct 31 high n 61.8% r of 2.0875-2.0763) wud suggest pullback has possibly ended but only a break of 2.0875 wud extend MT uptrend twds 2.0938 (equality proj. of 1.9880-2.0560 fm 2.0258)...