Weekly Technical Outlook on GBP/USD

Discussion in 'Forex' started by AceTraderFX, Nov 5, 2007.

  1. Updating time : 04/11/2007 23:14 GMT

    GBP/USD - 2.0888...Cable's recent relentless upmove after penetrating previous 07' high at 2.0656 has pushed price sharply higher n sterling rallied to another multi-year high of 2.0897 on Friday despite stronger-than-expected U.S. Oct payroll data, suggesting price is now en route to the 'psychological' barrier at 2.1000, this is just abv the projected target of 2.0994, being 1.618
    extension of the intermediate rise fm 2.0258-2.0575 measured fm 2.0481, however, as daily indicators are in o/bot territory, further strg gain may not be seen this week n reckon 2.1251 (1.618 ext. of 1.9880-2.0484 projected fm 2.0258) wud cap upside n risk has increased for a much-needed correction to take place soon.

    Therefore, buying cable on 50-75 points pullback is favoured as only below nr term good sup area at 2.0755/63 wud signal a temporary top is in place n risk is seen for a correction twd 2.0656 (prev. res now sup).

    Today, further gain to 2.0935/45 is seen after initial sideways trading but reckon 2.0990/94 shud remain intact. On the downside, only below 2.0800 wud risk stronger pullback twd 2.0763 b4 prospect of another rise later this week...
  2. buba7



    The cable is showing a steady increase in the past few days with relatively low volatility. Next target price is around 2.0900.