GBPUSD – Daily Technical Analysis –26 Jun 2013

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The GBPUSD maintained a bearish momentum the past few days. Now the pressure will be on the key support 1.5367. The GBPUSD will have to hold below the 1.5367 levels on a daily closing basis to push the market for further downside losses. If seen. It will target the 1.5260 levels where a breach will turn the focus on the 1.5130 levels. A further break will look for the 1.4980 levels.

Alternatively, a failure to hold below the 1.5367 levels, could mean a return to the 1.5530 levels, a daily close above this level would weaken the current bearish run and pave the way towards the 1.5750 levels.

In All, as long as 1.5750/1.5530 levels hold, the pair will remain biased to the downside with risk towards 1.5000 levels.

Considerations: A daily close above the 1.5530 levels would weaken the current bearish run, If seen, long – cautiously – or short after rejection from/ below 1.5750 with a target towards 1.5200/1.5000.

Recommendations: SHORT positions below 1.5530 with a target towards 1.5250 and 1.5000 as a second target.

Note that we have %R Williams bullish divergence on the daily chart, so the pair put a temporary bottom at 1.5343 yesterday, so as long as 1.5343/1.5367 levels hold, the pair will try higher towards 1.5330 levels, losing 1.5343 will have large bearish implication towards 1.5000 levels.

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