GBPUSD: Shooting Star Formation Portends Lower Prices Nearer Term

GBPUSD: The inability of the pair to sustain its intra gains on saw it reversing most of those gains to close marginally higher forming a shooting star candle on Wednesday. It was seen trading lower in early morning trading today. We now envisage corrective pullbacks to shape up. In such case, supports are located at the 1.5724 level, its eroded resistance which should now provide support. If a trade below there occurs, we could see the pair declining further towards the 1.5450 level which is the location of its daily 200 ema followed by the 1.5373 level, its Jan 08'09 high. Conversely, resistance is initially sited at the 1.6000 level, its psycho level followed by the 1.6085 level where its May 27'09 is located. Above there if seen should trigger gains towards the 1.6398 level, its Nov 03'09 high and possibly higher. All in all, with a shooting candle now printed, risk of further downside weakness is likely to be seen

Support Comments
1.5724 Dec 17'08 high
1.5450 Daily 200 ema
1.5373 Jan 08'09 high

Resistance Comments
1.6000 Psycho resistance
1.6398 Nov 03'09 high
1.6671 Oct 30,08 high

Daily Chart: GBPUSD

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's 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 the author incur any responsibility. The 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