- 1H: The GBP/USD finished its decline to the 1.5070 area, and actually got to as low as 1.05030 to start the US session.
- The GBP/USD could still rally to 1.53, but the market started the week held below 1.52, so the morning near-term outlook was a decline to the 1.5070 area before a move to 1.53. (Refer to Daily Technical Update 3/8/2010 GBP/USD).
- The decline took off after a shor bounce to 1.5150 before the US session began.
- The market is now testing support at 1.5050, but the stochastic does not show any pause yet. The most active part of today’s US session is wrapping up, so anticipate some bottoming action, though a sharp reversal back to the upside is also possible.
- Here’s some possible preparations for these couple of scearios.
- 1. If the market bottoms sideways a bullish candle to breaks 1.51 may suggest move to 1.53.
- 2. If a sharp reversal to the upside follows, wait for a decline first and then if a bottom is set higher than 1.5050, then look for the swing to continue towards 1.53.
Fan Yang
Currency Analyst
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. CMS will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
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