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GBP/USD Stalking New High
- Daily and 4H: We had established a short-term range between 1.6500 and 1.6800. (Refer to Weekly Technical Update 11.13.2009 ). The 1.6800 has been broken last week, but the market did not close above this resistance level.
- This week, we already have a break of the 1.6800, with the Monday US session closing slightly above. However, today’s price action showed inability to sustain. Therefore, we still have ranging action though with a slight bullish bias.
- We should stalk this pair as it declines towards the 1.6600-1.6650 area again, as we may consider very short-term bullish scenario if this area holds up as support.
- at the moment, the market is attempting to break a very short-term support at 1.6750 (apparent in 1H time-frame). If broken, we will likely see a decline to test 1.6650 within the upcoming Asian and Euroepean sessions.
- A break below 1.6500 would significantly change the short-term bullish outlook this week is showing. But if 1.6600 holds as support, the bullish case will strengthen, although we are in a ranging mode, so it may be a choppy rally.