GBPUSD: Presence Of A Shooting Star Candle Pattern Portends End Of Corrective Recovery.
GBPUSD: Although daily momentum indicators continue to suggest we could see further gains, price action at the end of Tuesday trading session now indicates that the recovery started at 12387 could be coming to an end. This case is supported by the fact that the pair reversed its intra day gains Tuesday and later closed lower printing a shooting star candle pattern (top reversal signal).If this scenario plays out and downside weakness is triggered, GBP will target the 1.7447 level, its Sept 11’08 at first and then its April’06 low at 1.7251 ahead of the 1.6857 level, its June’03 high. Clearing that level will put the pair in position to aimat the 1.6786 level, its Oct 10’08 low with a break and close below resuming the pair’s longer term weakness.Alternatively,if the top of the shooting star candle were to be cleared, the 1.7735 level, its Sept 16’08 low and the 1.7840 level, its Oct 03’08 high will come in as the next upside objectives. All in all, the pair retains its broader bearish structure even as corrective recovery is seen in the nearer term.
SupportComments
1.7447YTD high
1.7251 April’06 low
1.7049 Nov’05 low
1.6857 June’03 high
Resistance Comments
1.7735Sept 16’08 low
1.7840Oct 03’08 high
1.8669Sept 25’08 high
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