Wednesday, June 23, 2010
Forex: GBP/USD retreat from 1.4935 extends to 1.4700
The Pound continues giving away recent gains, and retreat from 5-week high at 1.4935 hit yesterday has extended lower on European session, breaking below 1.475 support to test 1.4700 area at the moment of writing.
Sterling has set a top at 1.4935, says Stoyan Mihaylov, technical analyst at Deltastock.com, and the pair is pulling back now, targeting 1.4645: "Yesterday's break below 1.4804 confirmed, that a top is place at 1.4938, so current bias is already negative for 1.4643, en route to 1.4450."
On the upside, the Pound should break above 1.4805 to negate downtrend, says Mihaylov: " Important resistance on the upside is 1.4805 and while the pair stays below, further depreciation is to be expected."