- Weekly and Daily: The GBP/USD had a 150% projection target near 1.49, as can be seen in the daily chart. (Refer to Weekly Technical Update 2.26.2010). The market came out of the gates bearish on the GBP/USD and pushed it to the 61.8% retracement as we can see in the weekly chart.
- Judging from the persistance of the decline, further drop may see a pause at 1.45, but there should be some significant support at the 1.4350 area. This is a cluster of 78.6% retracement, 150% projection, and 200% projection of various swings.
- If the market can close by the end of the US session below 1.50, this scenario is likely. But be careful if it closes above, say near 1.51, as this would would leave a spinning top along with potential stochastic crossovers in both Daily and Weekly.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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