GBPUSD: 1.2230 is a smidge of support
|SUPPORT: 1.2230 1.2198 1.2148 1.2116 1.2070....1.2030...
RESISTANCE: 1.2280 1.2330 1.2375 1.2420 1.2465 1.2510
1.2230 is a smidge of support....we have bounded off 1.2088 and are up this morning...However the pressure does look to remain to the downside and we have only corrected back 50% of the move from 1.2440...so as I have said the market is in a weaker frame of mind...and therefore currently we would want to be short...adding to shorts on a move towards 1.2380....we would view that the market should hold this resistance and therefore we could leave tight stops....Technically the market looks weak as well....and therefore to sell into strength is the most prudent way to trade this....Our weekly charts do show a little overcooked on the downside...but these are slow moving and we would only need a few weeks of sideways trading to alleviate this scenario....Now we do have support down at 1.2030...which is why I think the market will be defended in the 1.2050 region....so this is where we would look to cover shorts....The recent reaction low was 1.1973...so below 1.2030 is where this should aim for....There as been bandied about 1.15...1.14 and even for a brief time 1.12....but the market seriously did not get this low and therefore it is the 1.1973 area that will be defended.....The only way that a move lower will be negated I believe is above 1.2550.....but this is quite a way away....however this was the break point on the downside and therefore a return cannot be ruled out...Daily charts still favour the downside...even at these lower levels...so we must be ready to act and join the sellers in their quest for a lower market.
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