Today's FX Outlook for GBP vs US$
Tuesday, February 09, 2010
by Carol Harmer of Technical Analysis Reports
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GBP/USD
Cable had a narrow range yesterday holding both support and resistance levels. There has been little change overnight thus leaving the outlook unchanged for this session. Now as stated there is support at 1.5560. A break through here leads us lower for 1.5535/25 initially. You want to cover shorts to here. Re-sell a break of 1.5525 as a break of this support takes the market lower for 1.5450/15.
Now the daily charts do show oversold, and this shall help buoy prices this session, especially as we have bounced of 1.5535 quite nicely. 1.5660/85 should be the resistance band this will head for this morning.
This resistance is quite good, and sellers are likely to be waiting on these higher levels. Buyers would thus be expected to cover positions to here. Only if we can slip past sellers and break 1.5709 would any immediate downside pressure be erased, leaving 1.5790 then exposed in the short term.
For the full report: www.technicalanalysisreports.com
With a career spanning almost 30 years, Carol Harmer is undoubtedly one of the most respected and established technical analysts in the UK and is a founding member of the STA (The Society of Technical Analysts).
Carol’s career started in the early eighties, trading futures on the floor at LIFFE where she quickly discovered Technical Analysis as a way to maximise profits. She was one of the first traders on LIFFE to discover and study this form of analysis and quickly became widely recognised as an expert in its use as well as highly profitable.
This soon led to a position as Senior Technical Analyst for Midland Bank. She was later head hunted for the role of Manager of Technical Analysis for Nomura Bank and then as Head of Technical Trading at Credit Suisse.
In 1996 Carol launched 'Charmer Charts' to train independent traders in technical analysis and became the first person to provide daily forecasts for the established traders on the LIFFE floor.
She returned to the floor, trading her own account, advising traders throughout the day and continued her appearances on Bloomberg, CNBC and Reuters financial TV where she provided her valued, expert opinion on the direction of financial markets.
Carol has now established herself as an advisor and trader at a private hedge fund, whilst offering guidance and reliable information by way of her daily Technical Analysis reports to traders and financial institutions world-wide. Her 30 years of studying technical analysis ensures she is one of the most experienced in this field in the world today.
