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Forex Follow up to Blog on 01/05/09 PDF Print E-mail
Tuesday, 06 January 2009 23:06
I just wanted to follow up on yesterday’s blog post about the possible direction if the GBP/USD. If you didn’t get a chance to read it here it is. I felt the blog was also important enough to have referenced it in this morning email. The reason I thoughr it was important was because from a technical analysis standpoint it was a great example of using two analysis is reads combined to give an accurate reading of what may happen.

As it turns out, the analysis was correct and we are seeing a move to the top side today.  See the chart below.
forex daily chart

Using the Fibonacci Retracement points, descending wedge and support lines, knowing that 1.4500 had been broken but buyers were stopping any further move lower, all came together to create the current sentiment.

The next big level of Resistance should come in around 1.5196 which was the turnaround point right after Christmas. Coincidentally, this also roughly matches our target point for the move higher. I am staying with the current sentiment until I see otherwise. A touch of the upper line puts me neutral, until a break and close above puts the Fibonacci retracement lines in focus.

For resistance and support in the days ahead look to the hourly chart for signs.
forex daily chart

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Last Updated on Wednesday, 07 January 2009 17:21