- 4H: The GBP/USD has confirmed earlier reversal signal with likely another bearish session. The market however had another upswing to the 1.6450 level, near the would-be stop-loss level using the 3 ATR method. (Refer to Daily Technical Update 1.18.2010 GBP/USD).
- There is a break below the powerline at the 1.62-1.6250 area. The market is in an upsloping channel, and a break below the channel would spell further decline to the 1.57 support, seen in the Daily chart.
- There may be some short-term support at the 1.6050, but if today’s market closes below the 1.6200-1.6250 powerline, it has a good chance of breaking.
- The Daily chart also shows the 1.57 target as 127% retracement of latest upswing. The stochastic has a healthy reversal reading along with with strong price action after clear-out action.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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