Forex Investment and Currency Trading

GBP/USD – Focus shifts to resistance at 2.0314 after double bottom forms near 1.9724.
GBP/USD reached price target at 2.0150 today after the formation of a double bottom near 1.9724 halted a retracement phase. With 61.8% Fibonacci retracement of the February-March rally at 1.9757 also holding as valuations near oversold levels, support at 2.0015 and 1.9724 is expected to attract buying interest for a move to 2.0314. A daily close above this level would then target 2.0494.  2.0350 is establishing as the next price target.

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The GBP has been the weakest of the European currencies in 2008, with only the CAD trailing the GBP among G10 currencies this year. In fact, over the last week the trade-weighted GBP traded at its lowest level since March 1997. However, versus the weak USD the GBP has begun to display impressive performance. First, GBP/USD appears to have tested and held its January 22 low (1.9338) in late February, forming a double bottom pattern. While the recent USD recovery brought the GBP lower, GBP/USD impressively held support formed by the 55-day moving average (1.9768) and trend-line support (1.9751) from [...]

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