GBP/USD eyes 1.5350
February 8, 2010 - 6:38 am by Juan P. Bejarano · Leave a Comment
Daily Fundamentals:
The pair is mixed but weakness seems to be gaining strength.
Ahead, traders await the BRC retail sales monitor and the RICS house price balance for near term guidance.
Monday could see a reversal from last week’s moves but rallies should be capped at the 1.5800′s.
Bearish chart targets now look at the 1.5350 area and 1.4950 with extended weakness under 1.5300.
Trend:
Weekly : Bearish
Daily: Bearish
Hourly: Bearish
Support & Resistance:
From current levels, 1.5580, the pair finds initial resistance at 1.5660, followed by 1.5740, and 1.5805.
Key support to watch is the 1.5537 where a break of such would open targets to the 1.5450 level, followed by 1.5400 and 1.5350.
Strategy:
Although Sterling weakness is undeniable, the pair tends to have sharp corrections at times. We prefer to sell at higher levels to avoid some risks.
Limit Sell @ 1.5800 Targets: T1 1.5770 – T2 1.5350 Risk 1.5870
* After 20 pips profit move stop to entry, take profit at will. Comments will follow if outlook changes.
DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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