GBP/USD Does Not Follow EUR's Lead
Ian Copsey | Mar 09, 2016 11:57PM ET
GBP/USD INTRADAY CHART
BIAS: Overall the downside has more risk (below 1.4180-90) but I can't rule out another flat day like yesterday
Resistance: 1.4215-20 1.4240-46 1.4259 1.4274-83
Support: 1.4190-00 1.4173 1.4133-40 1.4107
MAIN ANALYSIS: Price here chose not to follow the lead of EUR/USD in losses. I can't rule out further consolidation that could reach as high as 1.4259-74. However, a break below 1.4190-00 would avoid the consolidation sccenario. On the assumption that price breaks below 1.4190, we should see losses down to 1.4133-40 at least - possibly to 1.4107. It's a little difficult to judge this in working out whether we shall see a corrective decline or impulsive, and that will need to be judged as losses develop.
COUNTER ANALYSIS: It will take a break above 1.4259-74 to approach and possibly break the 1.4283 to suggest follow-through to between the 1.4306-40 area being a prior gap. Above 1.4350 would surprise and maintain the upside.
MEDIUM TERM ANALYSIS:
March 7th: I am quite surprised by the depth of the correction. However, I feel we have reached that finite area into which there's a recovery and MUST now see losses to a new low... before seeing a correction back into the 1.42-1.43 area (as an estimate).
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