GBPUSD: Price Hesitation Still Seen. 

GBPUSD-Even though GBP broke below its daily rising channel the past week and held below it,the price action that followed that break remained unconvincing as a clear follow through on that break did not occur.While a negative weekly close was recorded the past week, that cended with the formation of a hammer(a negative candle signal) which is similar to the higher level rejection candle(shooting star) printed the previous week.The implication of this price action is that indecision of a clear directional moves in the nearer term is now setting in. Downside objectives are situated at the 1.4662 level, its Feb 23’09 high ahead of the 1.4305 level, its Mar 06’09 high and later the 1.4111 level, its Mar 30’09 high.To the topside, its Jan 16’09/Feb 09’09 highs at 1.4981/86 comes in as the next upside target followed by the 1.5066 level, its April 16’09 high.A clearance of the latter level will open the door for the resumption of the pair’s recovery towards the 1.5374 level, its Jan 08’09 high.Its weekly stochastics remains supportive of this view as it is heading higher.This remains supportive of our view that the pair could be forming a bottom with the caveat being a hold above its bigger support level at the 1.3504 level. All in all, despite the fact that indecision is now seen,as long as the pair maintains above the 1.3505/1.3655 zone, our bottom forming process case still holds.

Directional Bias:
Nearer Term -Mixed
Short Term –Bearish 
Medium Term –Bearish

Performance in %:
Past Week:: 0.81%
past Month: +0.31%
Past Quarter: -1.86%
Year To Date:: +0.31%

Weekly Range:
High -1.4814
Low -1.4398