GBPUSD: Sees Price Extension Below The 2.0132/181 Zone, August 14
GBPUSD-Having held above the 2.0132/181 zone in late July’07 and Aug 10’07, GBP broke through those levels on Monday exposing the 2.0059/72 levels, its April 25/26’07/May 01’07 after closing the session at 2.0123.
If the said zone fails to provide support and gives way the 1.9966/15 zone, its Jun 05’07 highs/Jan 23’07 high will be targeted with a loss of there opening the way for additional downside pressure towards 1.9824,April 03’07 high. Momentum indicators on the daily and weekly time frames continue to point lower suggesting further downside weakness.
Alternatively, on a bounce from its present price levels its 2.0132 level, .50 Ret (1.9632-12.0652)/April 18’07 high will be aimed at accompanied by 2.0181 set in July 30’07. Clearing this zone will put the pair in position to challenge higher prices towards 2.0219/05, its July 04’07 high/1.272 Fib Ext. (Monthly chart) and then the 2.0361/64 area, its July 11/12’07 highs. Above there lies more resistance levels at 2.0461, Aug 06 high and 2.0652, 2007 peak. All in all, as long as the pair continues to trade below the 2.0461 swing high, GBP remains vulnerable to further downside weakness.
Support Comments
2.0059/72 April 25/26’07/May 01’07 highs
1.9966/15 Jun 05’07 highs/Jan 23’07 high
1.9824 April 03’07 high
Resistance Comments
2.0132 .50 Ret (1.9632-12.0652)/April 18’07 high
2.0219/05 July 04’07 high/1.272 Fib Ext. (Monthly chart)
2.0361/64 July 11/12’07 highs
2.0461 Aug 06 high
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Analysis by Mohammed Isah of FXTechstrategy.com
