GBP/USD
- Daily and 4H: Looking at the 4H time-frame, the GBP/USD was due for a minor correction when it reached 1.6100. It was noted that this correction was to be stalked to top off around 1.6200-1.6250. (Refer to Daily Video Technical Update 12.17.2009, and Daily Technical Update 12.17.2009 GBP/USD).
- The market did exactly that rallying in the Asian session, then promptly reversing as the European session gone underway after the pair hit 1.6250. The decline accelerated right before and at the start of the US session.
- The 1.6000 area is an intermediate support area.
- A bullish divergence may be developing in the 4H time-frame, that is if the momentum doesn’t become even more bearish. We are approaching the 1.600. It would not be surprising to see it hit next week. Then, some short-term bullish interest may follow. We may see a bounce to the 1.6150 area, and if that holds, we may see some further decline towards 1.5800, the outer boundery of significant long-term support.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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