GBPUSD: Correcting With Upside Bias

GBPUSD: Hesitation continues to be seen in the pair's price action finding it tough to have a clear directional moves in the nearer term. While that continues to play out, corrective to resumption of its medium term uptrend is envisaged. Resistance starts at its 2009 high at 1.6662 where a break will clear the way for the resumption of its medium term uptrend towards the 1.7000 level, its psycho level. This view is consistent with its medium term outlook which is pointing higher. Downside objective begins at the 1.6209 level, its minor support where a violation will leave the pair targeting further lower prices towards the 1.6000 level, its psycho level ahead of another strong support standing at the 1.5801 level, its Jun 08'09 low. We envisage that a cap at these levels should turn the pair back higher again if tested but if a failure of that zone occurs, scope for further price declines will turn towards its daily 200 ema currently at 1.5578. Its daily studies are supportive of this view as they are heading lower. All in all, though presently undergoing corrective price activities in the nearer term, GBP remains biased to the upside in the medium term.

Support Comments
1.6209 Jun 16'09 low
1.6085 May 27'09 high
1.6000 Psycho level

Resistance Comments
1.6398 Nov 03'09 high
1.6662 2009 high
1.7000 Psycho level

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