Finotec News Archive - August 28 2007

GBP/USD

The following technical analysis gives us a detailed lookout on what is expected to happen to GBP/USD.

Rodian Rahnayev
28 August 2007

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[Strategy Buy@2.0090] based on a strong uptrend and bouncing on Standard Error Channel lower line.
- Previous resistance is the take profit at 2.0186
- Fibonacci retracement 38.2% will be the stop loss at 1.9984

The break of the support 1.9980 is a selling point; based on a head and shoulders formation and a failure to reach higher then the previous resistance 2.0110
- Fibonacci retracement 61.8% is the take profit at 1.9850
- Fibonacci retracement 38.2% is the Stop Loss at 2.0049

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of the two moving averages below the zero line, the shorter term moving average is faster than the long term and is pointing upwards with break of zero line. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in a bullish direction with break of 30% line.
The momentum oscillator is very important to understand the strength of the market and as we see on the graph; it break the zero line and moving upwards. The Stochastic oscillator breaks 20% line and continues to go up.
Most of the Indicators give us bullish signals.

* The following analysis is for information only; Finotec is not responsible for any
decisions or misinterpretations based on the given text.

By Finotec’s professional analyst,
Tony B.

dealingdesk@finotec.com

Finotec Analysis Team
28 August 2007

The market review and analysis content on this site, including news, quotes, data and other information, is provided for your personal information only, and is not intended as a recommendation for trading purposes. Content on this site does not provide any form of advice (investment, tax, legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments or products. Finotec does not provide investment advice or recommendations to buy or sell securities.

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