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How Low Will the GBP/USD Go?

Last updated 2/25/2009 2:31 PM EST (GMT -5) 0 Comments - Add your comment

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FX360 Technical Analyst Staff

Technical Analyst, GFT

In this morning's intraday technical report ( here ), we discussed a break below 1.4360 as the trigger needed to short the GBP/USD with targets just above intraday Fibonacci support at 1.4317 (T1) followed by 1.4237 (T2).  Well, the cable did manage to break below 1.4360 knocking out both profit targets, but there still may be a bit of room to the downside before prices face previously established support near 1.4150.

On the 8hr chart, we're currently seeing a potential bullish Gartley pattern defined by the following Fibonacci convergence...

Looking back over the last week or two there's been quite of bit of resistance near these levels, so if prices show signs of turning we may see a bounce up to 38.2% of CD near 1.4300. Otherwise, if prices manage to break though  the 1.4100 barrier this could spark further losses down to 1.3800-.3750 followed by 1.3500-.3475.

15min Chart - Room down to 200% fib support at 1.4140	8hr Chart - Medium-term fib support

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