Fri, 18th of April, 2008
By Setyo Wibowo (analyst@fxinstructor.com)

GBPUSD Outlook
Yesterday, the Sterling fight back against US Dollar, made more than 200 pips movement. From fundamental point of view, some believe that this is caused by a report that BOE may announce a plan to help the British economy/financial. From technical point of view, I am forced to change my model to mixed with upside bias, since the pair already broke the trend line (see Chart #1). We will see in days ahead, whether this is valid or false trend line break out caused by temporarily market sentiment as a reaction to BOE plan. On the daily chart, CCI is about to cross 100 line. This could be a warning for possibly further upside movement and even change of GBPUSD trend direction. The key level is 1.9990 area (61.9 % Fibonacci retracement from 1.9336 to 2.0397)

Chart #1

GBPUSD Daily Supports and Resistances:

• S1= 1.9749
• S2= 1.9603
• S3= 1.9516
• R1= 1.9982
• R2= 2.0069
• R3= 2.0215