1 March 2010
GBP/USD: technical analysis
The hopes for the supports at 1.5230/20 and also 1.5180/90 mentioned in the previous analysis weren’t justified. The price continued its decrease and already resides at 1.4900/10 now; but before that it had exercised the levels of 1.4800/1.4790. Nevertheless, the indicators were most likely not to decline the intents to reverse upward, though they strengthened their values in favor of decrease. R% is directed upward and may escape beyond the oversold zone; the probability of the divergence sharpening at MACD became much weaker, but hasn’t been neglected completely. These moments may be considered as claims for cautions. Moreover, the grounds in favor of the special care are the levels of 1.4900-1.4800 themselves, which coped successfully with the functions of resistance and support in the end of 2008 and beginning of 2009. It’s obviously reasonable t put on ice the trading deals until the clearing up of the current situation as the ratio of risk/profitability seems to be not in favor of sales’ attractiveness and maintenance of short positions as for GBP. The trading increase higher than 1.5100/50 prompts the beginning of the massive retracements. On the other hand, the price downfall lower than 1.4700 is less probable.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst
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