Forex Technical Update
July 11, 2010
- Daily and 4H: The GBP/USD pair was testing the 1.52 resistance, and after 3 tries came down to complete a very clear triple top. Since last week, I noted that the 1.52 level was heavy resistance and topping action should mean the market is respecting it, probably returning to previous market conditions, a decline.
- I will start with the most aggressive target. Taking the swing from mid-April to mid-May and projecting it from the 1.52 top, we should see a target near 1.40. There are some fibonacci retracement levels along the way, but to me the most important is the one at 1.48 area. This level is a powerline and 50% retracement. I feel that the market still has a chance to rally from here towards at the 1.52 and beyond.
- That would represent a scenario where a bullish impulse wave is developing its terminal wave. A clear break below puts this scenario to rest.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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