August 1, 2008 04:21

Technical Analysis – GBP/USD Faces More Losses

Posted In: Technical Analysis
By:

8-1-08

3:26a GMT – Pair briefly spiked today on slower US GDP growth than expected by big money immediately brought that down to previous levels as the picture in the UK is not much better. 1.9840 is our first level of resistance with 1.9905 holding the second resistance point. Pair is still caught in a bearish channel (yellow lines below) and fundmentals support continued GBP weakness. Consolidation over the past days has relieved oversold levels and opened up a fresh downside.

Trading Idea: shorts preferred below 1.9850 with targets at 1.9785, 1.9755 and ultimately 1.9705.

(click to enlarge)
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