GBP/USD, EUR/USD and STG/EURO
Fri, May 29 2009, 06:29 GMT
by Carol Harmer
GBP/USD
Sterling basically traded sideways yesterday, bouncing off 1.5852and reaching 1.6015.
1.5984 to 1.6040 offers good technical resistance. So would at this point still sell into strength to these higher levels, but this time put stops above 1.6108 if possible... If not get out if 1.6060 breaks but look to get back in if the market disappears back below 1.6040.
1.5870/55 is again your first target. Here sellers are looking to cover shorts. They will re-instate if below 1.5850 as a break of this support keeps the immediate bias to the downside and sees 1.5780 to 1.5725 then as your targeted area.
EUR/USD
Euros held 1.3793 and buyers clawed back the previous days declines, closing at 1.3934. This morning strength has followed through with 1.3998 currently the high. 1.4025 is looking likely however quite quickly.
Between here and 1.4051 offers good resistance and twice now Euro has failed to break the 1.4051 level thus leaving a double top in place. Double tops hold, and triples never usually do, so if this market does head to 1.4051 there is a good chance buyers will break it and they will see it sail past the sellers for 1.4120/48.
However if sellers can manage to hold below 1.4051 then you should look for a move back to at least the 50% short term fib level of 1.3897. Buyers will be waiting here and only below 1.3860 would buyers bail out.
STG / EURO
Stg/Euro reversed direction yesterday and came lower to 1.1409. A small retracement has been evident this morning, but it needs to trade and hold back above 1.1460 to ease any further downward pressure.
Now support is located at 1.1370,. If sellers push this through the support level then you will see this trading lower with 1.1325 to 1.1307 looking to be your short term objective.
Now if this can trade and hold back above 1.1460 the immediate downside threat will be over and buyers would be expected to take this higher to 1.1512/17 initial target.
