On the $pot : GBPUSD

Written by JS T Alexander | 30 July 2010

Technical Application : Speculative Outlook Ahead!

A Technical outlook of the monthly chart for the GBPUSD has shown a that the overall trend lower is within a rising channel as indicated with the blue lines from the support and the resistance. This was also indicated in the previous slide in a weekly time frame.

The pivotal price point where two (2) price reversal (shaded in olive) over a period from April ’09 to August ‘10 have been reinforced with a gradual increase in volumes specially doubling to 199559.3 towards the month of August ‘10. Penetrating the monthly resistance line (red) and setting an objective with the MA price of 1.5988 supported by momentum would make prices reach its 38.2% Fibonacci levels as the next price resistance area. Some increase in volatility would be expected for the weeks ahead. However, regardless of the outcome on the GDP report; any corrective move for the GBPUSD would only refuel its advances after a reasonable correction not lower than the 1.5080 - 1.5150 range.

The probable angle of acceleration may be steep as the weekly have shown its strength and steady climb. Any decline in prices and volumes would simply be from profit-taking and settlements on position and price adjustments on a technical basis.

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