Best Financial Markets Analysis Article The downtrend in GBP/USD tested a long term 76.4% retracement level, where the initial reaction has been positive, though muted so far. There are certain levels on the Daily chart that must be negotiated before we are able to look for a better recovery phase.

The FX Trader’s view

WEEKLY CHART:

The last downleg has seen the 76.4% pullback level tested, where we look to see if support can emerge.

Certain bull signals are not yet in place on the Daily chart…

DAILY CHART:

The market remains supported by the 76.4% pullback level, initial resistance found at the 1.4780 01-Mar low at the start of Jun.

The slightly higher 1.4895 23.6% recovery level of the whole fall from 1.7042 Aug-09 high offers first interesting resistance though – a close through this would be an initial positive sign.

However, the higher bear channel top projection which currently coincides with prior 1.5125 lows offers the most important resistance here, with a breach of this to suggest a better recovery phase was underway.

Meanwhile in the Commodity Specialist Guide we are keeping in mind a lower projection just above 1.3800, a 2.618 swing off prior Oct/Nov-09 upleg.

Mark Sturdy
John Lewis

Seven Days Ahead
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