GBP/USD, EUR/USD and STG/EURO
Thu, Apr 30 2009, 06:02 GMT
by Carol Harmer
GBP/USD
Buyers came out yesterday to defend 1.4620/16 and did so well, committing themselves to breaking through topside resistance levels. This morning sterling has carried on in the stronger tone left over from yesterday.
Intra day resistance located at 1.4860. Buyers will be looking to cover all longs to these higher levels. Sellers may step in, given the recent action, but they will be wary and as soon as 1.4875 is busted by buyers, sellers will retreat quickly and turn around their positon as buyers would have 1.4941 in their sights. If buyers continue to raise the stakes and 1.4950 breaks go with the flow as buyers will try for 1.5068/88.
Support is down at 1.4722/08. Pullbacks to these lower levels should see buyers come out of the woodwork and defend this support. Only below 1.4700 would buyers wobble and sellers take advantage of this scenario and push the market lower for 1.4644 to 1.420/16.
EUR/USD
You can see quite clearly on the hourly charts the Double Top formation. This resistance comes in at 1.3340. The break lower from this formation should set the tone for today.
Intra day support is located at 1.3246. If sellers decide the market needs more correction they will drive it below here possibly looking for the 50% fib level of 1.3151. Buyers will have had enough of losing out by then and will come out and defend this support. Now the 50% line is always a tricky one so look for some form of struggle at these lower levels. However do expect the buyers to win initially and drive the market up to 1.3246 once more.
Now if buyers do defend 1.3246 initially, and break this higher above 1.3340 then the top formation would be negated and Euros will carry on with upward move with 1.3381/1.3393 looking to be your immediate attraction.
STG / EURO
Stg/Euro has recovered off the lows off 1.1078 and is testing 1.1143. You have resistance at these higher levels and this morning a break above here sees buyers scrabble for bargains as the market then moves to 1.1165.
Sellers will be about at these higher levels and look to push this back lower. However, if the buyers are persistent and break above the 1.1170 you are looking at the marker to come higher with 1.1192 then the short term objective. Buyers will be profit taking at these higher levels. Sellers may come out here and hold off the buyers, gently pushing this lower. However if 1.1195 does break then buyers will gleefully raise the market, leading it higher to 1.1254/63.
Support is at 1.1120. If buyers cannot defend this support look for weakness to follow to 1.1078. Short covering here will support for a while, but if 1.1070 yields sellers will push this lower for 1.1045.
