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GBP/USD Mid−Day Technical Report

Mon, Jan 26 2009, 15:36 GMT
by ActionForex.com Team

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GBP/USD's recovery from 1.3503 extends further today and as discussed before, further raise could still be seen to 1.4052 resistance and above. However, upside is expected to be limited well below 1.4469 support turned resistance and bring fall resumption. Decline rom 1.5722 is expected to extend to 61.8% projection of 1.8668 to 1.4557 from 1.5722 at 1.3186 next on resumption.

In the bigger picture, as discussed before, decline from 2.0158 is interpreted as being a five wave sequence (1.7445, 1.8668, 1.4557, 1.5722). Fifth wave decline from 1.5722 is still in progress and sustained trading below 1.3680 long term support (50% projection of 1.8668 to 1.4557 from 1.5722 at 1.3667) will set the stage for further decline to 61.8% projection of 1.8668 to 1.4557 from 1.5722 at 1.3186 next. Break will target 100% projection at 1.1611. On the upside, break of 1.4469 will argue that fall from 1.5372 has completed, so is that from 1.5722 possibly. In other words, this will imply that a medium term bottom might be in place and some stronger rebound could be seen to retest 1.5722 resistance. at least.


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