Thursday, May 21, 2009

Daily Outlook for GBPUSD


Attached is the 1H chart for GBPUSD and like the EU, this train also seems to have no stopping. Considering the volatility of this pair, yesterday would have been a terrible day to trade. Lots of fake moves and unless you are a very good trader, the whipsaws would really have burnt your account. Shows what the professionals would do to get your money. We had a raise, then a huge dip, then again a raise. Woof!!

Anyway, as in EU, the hourly and daily charts dont show any major resistance and we again have to go to the weekly to see any kind of resistance. But for the past few hours, the price seems to be stalling around 1.5880 but considering the fact that the last few hours marked the end of the US session, that does not seem to be a great surprise. We should see London showing us the way.

On the upside, we should see 1.5885 acting as decent resistance and if that gives way, we should go all the way close to 1.6 which should prove as a very good psychological resistance.

On the downside, there is good support at 1.5870 and then at 1.5810 and then a strong support at 1.5750. As In EU, i would expect a retrace to close to 1.58 and then the PA there should tell us the future direction.

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