GBPUSD & EURUSD
Fri, Nov 13 2009, 07:24 GMT
by Carol Harmer
GBP/USD
A relatively quiet day in Cable yesterday so the view today remains unchanged from yesterday. Both the long and short term charts are calling for weakness and below 1.6560 sees this come lower once more for 1.6440/20. At these lows you may well see buyers come into the market, as this would have fallen 4 points in two days thus in need of correction, but cable overall does look weaker.
Rallies from current levels should be sold. 1.6620/40 offers good short term resistance and sellers will be waiting here to re-instate shorts looking for another move lower. They would only review position if this broke above 1.6680. Above here sees a short burst to 1.6710 and sellers will once more be waiting. Only above 1.6740 would the short term picture alter.
So below 1.6560 as stated sees 1.6440/20 as your overall short term objective. This level of support is expected to hold and sellers would be advised to cover prior this support which will be met with determined buyers hoping to stave off another onslaught of Cable selling. Below 1.6400 sees the buyers fail.
EUR/USD
Eur/Usd broke lower and came down to 1.4820. You have seen the market bounce from these lows today, but the topside is looking to be contained by resistance located at 1.4910 to 1.4940. Within this band sellers will start to take an interest and will be looking to drive this lower for 1.4850/20 once more.
Within this support band cover all shorts. Sellers will look to re-sell if the market breaks 1.4805. This would provoke a move lower 1.4785 initially. This region offers good support and sellers will be looking to cover. Also you should see buyers enter at these lows and help support this market. However they will spin round and reverse if 1.4770 breaks. A loss of this support sees weakness prevail for 1.4730 then 1.4685/80.
Now if this does climb above 1.4945 there is scope for 1.4990. Sellers will be waiting here and will only reverse above 1.5005 for 1.5020/40.
