GBPUSD & EURUSD
Wed, Nov 11 2009, 07:00 GMT
by Carol Harmer
GBP/USD
Cable spent a quiet day yesterday after the bounce from 1.6600, just coming higher to our resistance level of 1.6740. Its been a little higher this morning but not much, and unless it can trade above 1.6780 there is more scope for this to trade lower.
1..6720/10 is your short term support. A loss through here sees sellers on the case for 1.6640. Sellers will be looking to cover to here. You may see some buyers in at these lower levels, but they will not hold a break of 1.6640. A loss through here would see 1.6600 tested once more and this is where you would expect the market to halt initially. Buyers will enter, and only reverse a loss of 1.6580.
Now if we can climb back above 1.6780 there is still the 1.6830/45 resistance to overcome. Buyers will look to take profits to these higher levels. Sellers will also intervene and it is only a break of 1.6860 that would negate further downside moves.
EUR/USD
Eur/Usd double topped at 1.5023 and this has kept a lid on prices. As long as the market holds below this resistance this market will trade lower. Initial support is located at 1.4940/20 and any sellers should be looking to take profits on shorts to here.
Sellers will re-sell a break of 1.4915. A loss of this support keeps the market underpinned, leading it lower to 1.4890. Once more you will see sellers cover to here. This region should hold and buyers would then be expected to come forth and defend this level. Stops will be placed quite tight then below 1.4885 as a loss will see the market come lower for 1.4870/62 initially with a break seeing 1.4815/07.
1.4990 offers short term resistance and if buyers do try and take the market above here it should be capped by 1.5020. Sellers will be evident here and they will only reverse if the market makes a break above 1.5040.
