GBPUSD 4-08-07

4-8-07

GBPUSD

There was no trade entered in the GBPUSD on Friday. Since reaching the 1.9800 area of supply, the GBPUSD has been absorbing areas of breakout support and moving lower in the process. It is in a downtrend. Until we see the 30 weighted moving average on the 60 minute chart catch up to the trading range and flatten out, there is the potential for the GBPUSD to continue lower. There are no areas of peak demand that have the potential of reversing this downtrend until the GBPUSD reaches 1.9460 area. The 240 chart shows that the GBPUSD is sitting on a breakout support area at 1.9641 with the next one at 1.9570. If this 1.9641 area of support gives out, the area of breakout support at 1.9570 should produce a decent bounce ahead of that 1.9460 peak demand area. I will go long at the 1.9570 breakout support area if there is a sell off down to that level for my next GBPUSD long trade. I will short 1.9710 for my next short trade in the GBPUSD.