Is GBP/USD Momentum on the Wane?
23 June 2011
WEEKLY CHART -CONTINUATION
The previous break through falling resistance was bullish -but after the 50% recovery level was neared the market has slipped. Support from the old falling return line just below 1.6000 is now being tested.
DAILY CHART:
The recent break of rising support was an initial sign of momentum loss.
However, lower supports are more crucial, including the 1.5934 28-Mar low and, in particular, the channel base projection around 1.5800. This latter combines with a 38.2% pullback level nearby at 1.5785 -a violation of this would signal a more prolonged correction phase was underway.
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