25 July 2008
Last Updated on 22 June 2012
Mohammed Isah
GBPUSD: Hesitating With Downside Bias.
GBPUSD: GBP continues to face bear threats following its Thursday sell off on the back of its price failure at the 1.5774 level. This leaves the pair vulnerable towards the 1.5613 level and ultimately its Jun 2012 low at the 1.5266 level. Below here will pave the way for a move lower towards its July 18’2010 low located at the 1.5122 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to return above the 1.5774 level to resume its corrective recovery towards the 1.5857 level where a violation if seen will target the 1.6000 level. Price hesitation could occur here and turn the pair back down. On the whole, GBP now faces bear threats having halted its price correction at the 1.5774 level.
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EURUSD: Weakens For A Third Consecutive Week, Violates The 1.4479/46 Levels
EURUSD- Outlook remains low after the pair extended its doji candle triggered declines the past week pushing it through its strong support levels the 1.4479 level, its 0ct 02’09 high and its Aug 05’09 high at 1.4446 to close lower at 1.4332. With its pattern of higher highs and lows broken halting its medium term uptrend, risk of further downside is now seen towards the 1.4176 level, its Sept 01’09 low with a turn below there paving the way for a run at the 1.4044 level , its Aug 17’09. Further out, support is located at its big psycho level at 1.4000. This view is supported by its weekly studies which are bearish and trending lower suggesting further downside weakness. On the other hand, resistance starts at 1.4444/79 levels where we expect a reversal of roles. If that fails, further upside could shape up towards the 1.4625 level, its Nov 03’09 low and then the 1.4799 level, its Nov 20’09 high. If that level fails to hold, we may see further climb higher towards the 1.4949 level, the back of its invalidated LT rising trendline.
