Forex: GBP/USD bounces at 1.4870 and reaches 1.4940
Wed, Mar 10 2010, 11:44 GMT
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FXstreet.com (Barcelona) - The Pound is gathering upside momentum after plunge to one-week low at 1.4870, weighed by an unexpected decline on UK manufacturing output, and the pair has taken back about 70 pips to reach 1.4940 area.
On the upside, the pair might find resistance at 1.4950/60 (intra-day supp/resistance area), and above here, 1.5015 (session high) and 1.5070/85 (intra-day resistances). On the downside, support levels lie at 1.4970 (session low), and below here, 1.4850 (Mar 2 low), and 1.4780 (Mar 1 low).
According to Valeria Bednarik, technical analyst at FXstreet.com, current recovery will remain capped at 1.4940/60: "Hourly charts show some upside corrective movement developing, yet 1.4940/60 area should limit rally and generate a downside rebound. Clearly above 1.4970, pair could attempt to regain 1.5020 area."

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