Mohammed Isah
09-23-2008, 06:40 AM
GBPUSD: Loss Of Momentum May Weigh On GBP As It Eyes The 1.8795 level.
GBPUSD: GBP opened strongly higher (1.8841) building on its Friday gains to close Monday session higher at 1.8569 and setting the stage for a run at the 1.8795/1.8802 levels, marking its Aug 26’08 high/.50 Ret (2.0157-1.7447 decline).We see the pair encountering strong over head supply here as a combination of the two mentioned resistance level should force the GBP lower and activate its medium term decline again. Price objectives above here are located at the 1.8836 level, its Nov’06 low and the 1.9122 level, its .618 Ret. On the other hand, the 1.8482 level, its .382 Ret is now expected to reverse to support after losing its role as resistance. Cutting through this level could accelerate further declines towards the 1.8277/44 zone, which represents its Sept 17 & 18’08 highs ahead of the 1.8128 level (Sept 15’08 high) followed by the 1.7976 level (Sept 08’08 high) and then its YTD low at 1.7447.All in all, GBP may have enjoyed a run off the 1.7447 level but while overhead resistance that runs through the 1.8795 and 1.8802 levels are maintained, its medium term decline is expected to take hold.
Support Comments
1.8482 .382 Ret
1.8123 Sept 15’08 high
1.7976 Sept 08’08 high
1.7447 YTD high
Resistance Comments
1.8841 Sept 22’08 high
1.8795/1.8802 Aug 26’08 high/.50 Ret (2.0157-1.7447 decline).
1.9122 .618 Ret
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This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are those of FXTechstrategy.com own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which FXTechstrategy.com incurs any responsibility. FXTstrategy.com does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report.
GBPUSD: GBP opened strongly higher (1.8841) building on its Friday gains to close Monday session higher at 1.8569 and setting the stage for a run at the 1.8795/1.8802 levels, marking its Aug 26’08 high/.50 Ret (2.0157-1.7447 decline).We see the pair encountering strong over head supply here as a combination of the two mentioned resistance level should force the GBP lower and activate its medium term decline again. Price objectives above here are located at the 1.8836 level, its Nov’06 low and the 1.9122 level, its .618 Ret. On the other hand, the 1.8482 level, its .382 Ret is now expected to reverse to support after losing its role as resistance. Cutting through this level could accelerate further declines towards the 1.8277/44 zone, which represents its Sept 17 & 18’08 highs ahead of the 1.8128 level (Sept 15’08 high) followed by the 1.7976 level (Sept 08’08 high) and then its YTD low at 1.7447.All in all, GBP may have enjoyed a run off the 1.7447 level but while overhead resistance that runs through the 1.8795 and 1.8802 levels are maintained, its medium term decline is expected to take hold.
Support Comments
1.8482 .382 Ret
1.8123 Sept 15’08 high
1.7976 Sept 08’08 high
1.7447 YTD high
Resistance Comments
1.8841 Sept 22’08 high
1.8795/1.8802 Aug 26’08 high/.50 Ret (2.0157-1.7447 decline).
1.9122 .618 Ret
To receive this technical report and more please visit www.fxtechstrategy.com
This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are those of FXTechstrategy.com own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which FXTechstrategy.com incurs any responsibility. FXTstrategy.com does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report.