Daily (Chart) Technical Strategiest
GBP Faces Overbought Nearer Term (July 13th)
GBPUSD-After a rise through layers of resistance levels following a bottom at 1.9622 in early Jun’07,GBP is now overbought suggesting that price may either consolidate or pullback in order to ease the said condition.
In such a situation, a push lower targeting the 2.0205/19 area, marking its July 04’07 high/1.272 Fib Ext. (Monthly chart) is expected with an invalidation of there opening the door for further downside weakness towards the 2.0132 level set in April’07. Below here will be needed to bring losses aiming at the 2.0059/72 levels, its April 25/26’07/May 01’07 highs and then at the 1.9966/15 zone, its Jun 05’07/Jan 23’07 highs.
On the upside, a clean break of 2.0361/64 levels, its July 11/12’07 highs will invalidate the downside view and bring the next upside target towards the 2.0425 level, its 1.618 Fib Ext ahead of the 2.0673 area, its 1979 low followed by its 1978 high at 2.0980.On the whole, GBP’s broader bias remains to the upside but may undergo nearer term set back to unwind its overbought condition now displayed on the daily time frame.
Support Comments
2.0268 1.272 Fib Ext. (daily chart)
2.0205/19 July 04’07 high/1.272 Fib Ext. (Monthly chart).
2.0132 April’07 high
2.0059/72 April 25/26’07/May 01’07 highs
Resistance Comments
2.0425 1.618 Fib Ext
2.0673 Oct’1979 low
2.0980 Oct’1978 High
__________________
Analysis by Mohammed Isah, forexfactory.com
