Daily Technical Outlook On Gbp/usd By Acetrader - Forex Forum

Updating time : 16/07/2008 00:36 GMT

GBP/USD - 2.0053...Cable rallied to its highest since May at 2.0162 y'day
on dlr's broad-based weakness n also stronger-than-expected CPI n RPI data which
implied that the BOE wud refrain fm cutting interest rates in order to combat
inflation, however, the British pound retreated later in the day to 2.0011 on
profit taking n cross unwinding vs yen on risk aversion (as DJI fell 93 pts).

Although y'day's retreat fm 2.0162 suggests minor consolidation below
there wud be seen initially, this move is viewed as a correction of recent
upmove n as long as 1.9988/90 (50% r of 1.9814-2.0162 n prev. minor res) holds,
mild upside bias remains for a rebound, however, break of 2.0114 (reaction high
made y'day around the beginning of Fed chairman Bernanke's testimony) is needed
to signal erratic rise fm 1.9361 has once again resumed for re-test of 2.0163
n then twds 2.0193. Looking at the daily chart, only a daily close abv 2.0193
wud extend gain twds upper lvl of the broad established range of 1.9337-2.0399.

Below 1.9988/99 wud risk stronger retrace. to 1.9962 (38.2% r of 1.9712-
2.0162) n 1.9932 (y'day's low) but 1.9881 (prev. res) shud hold, yield rebound.