Daily Technical Outlook on GBP/USD

Discussion in 'Forex' started by AceTraderFX, Nov 7, 2007.

  1. Updating time : 08/11/2007 01:06 GMT

    GBP/USD - 2.1012... The British pound rallied in Asian morning yesterday on talk that China may diversify its forex reserves into other strong currencies, the pair rallied to 2.0955 1st b4 extending intra-day gain in Europe to a 26-year high of 2.1072. Price retreated sharply later in NY due to cross unwinding in sterling especially versus the Japanese yen on the selloff in U.S. stocks.

    Cable's o/n retreat suggests recent upmove has 'possibly' formed a temp. top at 2.1072 (just 1 tick below equality proj. of 2.0565-2.0875 fm 2.0763 at 2.1073) n consolidation with initial downside bias wud be seen but breach of 2.0955 (prev. res) is needed to confirm n yield stronger retrace. to 2.0893/07 (62% r of 2.0782-2.1072 n Tuesday's high), however, reckon 2.0850/61 sup area shud remain intact today n yield rebound.

    On the upside, a rise abv 2.1073 may extend marginal gain abv 2.1100 (2 times extension fm 2.0782-2.0907 measured fm 2.0850) but bearish divergences on hourly oscillators shud prevent further strg rise. Our daily strategy is still favouring buying on dips for another bounce twd aforesaid y'day's high...
  2. Gonz


    lol i already in huge short position with great profit... and if the news is true, good i will sell more when it bounce up a bit :D
  3. GaryN


    Curious how you can be in a huge short position with great profit when were only about 35 pips from the high.