GBP/USD
Wed, Jun 10 2009, 09:55 GMT
by Carol Harmer
GBP/USD

Cable reversed direction yesterday with the break above 1.6040. Buyers then went for blood as they chased sellers away until reaching 1.6360. Now the sideways move since this high has eased short term overbought indicators leaving buyers free to try and break 1.6360 this morning.
If buyers achieve this they will march on, wiping the sellers to one side and lead this higher with 1.6435 the short term objective. Small profit taking here sees it cap in the short term. However a break above here keeps Cable onwards and upwards, with resistance then at 1.6672/90 looking the likely target.
1.6360 capping sees sellers go for the 1.6220/10 support. This level is the first short term 25% retracement target. Buyers will be all over themselves to scoop up bargains at these lower levels. Sellers may be daunted and it is only below 1.6200 that they will feel more confident and try to run with cable down to 1.6115/1.6040 once more.







