- 4H: The previous video post for the GBP/USD pointed out that the next target for the GBP/USD as it continues to decline aggressively is the 1.45 area. (Refer to Daily Video Technical Update 3.2.2010).
- This week, the market has found support at the 1.4850 area, and a retracement to 38.2% materialized.
- The market fails twice to rally above this retracement level near 1.5115, and from this double top action, the market looks ready to continue its decline.
- The stochastic forms a “M” pattern and suggests bearish continuation.
- We see a powerline at the 1.50 area, so a break below this may be a confirmation for the bearish continuation.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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