GbpUsd Weekly Technical View
January 21, 2008GbpUsd traded between two important support and resistance levels for the most part of the week, after bouncing from the 1.9550 zone it was rejected by the resistance area above 1.9700 and this scenario repeated 3 times during this past week; only On Thursday the pair managed to spike up toward the 1.9800 level but it lacked strength to stay there and fell back to close the week pips away from the 1.9550 base.
A continuation of Friday’s move in the next few days will certainly confirm the bearish trend for the last couple of months, a break below 1.9550 will open up the road to 1.9180 as the main bearish target and support level.
Conversely a bounce from the 1.9550 that will get the pair trading above 1.9600 will force us once again in the above mentioned range and we will have to look at 1.9670 as the next short term target. Same as in the EurUsd case the pairs trading volume on Monday will be affected by the US holiday and to some extent we could witness some erratic price action or a very mellow day.
