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GBP/USD Daily Commentary for 2.23.09

Discussion in 'Technical Analysis' started by FastBrokers, Feb 23, 2009.

  1. FastBrokers

    FastBrokers New Member

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    The Cable has made some impressive gains from its new base in the last 24 hours. The Cable surged through our 1st and 2nd tier downtrend lines, yet is stalling below our 3rd tier at our previous 1.4660 top-end resistance. If the Cable can manage to break through our 3rd tier, then we foresee more large near-term gains. However, the rally could stall if the S&P futures turn negative. Should the futures drop below 2008 lows, then GBP/USD would likely follow suit considering the coupling of the two economies. Therefore, we maintain our negative outlook for the Cable until the currency pair can push through our next downtrend line and February highs. Britain will release some closely watched economic data on Tuesday, including Prelim Business Investment, CBI Realized Sales, and BBA Mortgage Approvals. Fundamentally, we maintain our resistance of 1.4660 with fresh resistances of 1.4742, 1.4842, and 1.4929. To the downside, we see supports of 1.4569, 1.4496, 1.4392, and 1.4328. The psychological 1.45 area is turning into a cushion while 1.50 serves as a strong barrier to the upside. The GBP/USD is currently exchanging at 1.4585. MORE...
     
    #1 FastBrokers, Feb 23, 2009
    Last edited: Feb 23, 2009
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