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Forex Chartist Technical Analysis

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GBP/USD & EUR/USD

Wed, Nov 4 2009, 07:29 GMT
by Carol Harmer

Charmer Charts.com


GBP/USD

GBPUSD

Cable finally did something yesterday and headed lower initially to 1.6260 which was a small support line and this then bounced. Today there is resistance located at 1.6474/90. Within this band previous buyers will be looking to cover longs. Now from this point you may see the market edge lower once more back to 1.6385 region.

Here short term buyers will be waiting. They will be looking to instate longs for a resumption of the upward movement. Only a break of 1.6345 would negate further upside moves and propel this lower for 1.6285/65 once more. Here again buyers will be waiting and they will only abolish longs if the market is below 1.6225.

Now if above the 1.6470/90 region look for this to come higher with 1.6510/20 as your first objective. Here cover all longs. Re-instate longs above 1.6520 for 1.6565/85.


EUR/USD

EURUSD

Eur/Usd came lower yesterday to target of 1.4625 and has bounced to 1.4753 this morning. Now the short term charts are showing overbought levels, so care must be taken. Given the short term scenario it is unlikely that this can break above 1.4765/85 without correction first.

Sellers should be waiting at these higher levels looking to drive this lower. Initially 1.4730 to 1.4709 would be the short term objective. However a loss of 1.4700 sees this lower still with 1.4685/80 then the target. Sellers will cover to here and review the situation.

Now if this does break above 1.4790 care must be taken, as this is in dangerously overbought territory and really should not travel much higher before a correction is achieved. However it will be enough to stop out the shorts and head for the next resistance of 1.4818/20 possibly 1.4840/45 before finding a top.

Published on  Wed, Nov 4 2009, 07:37 GMT


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