GBPUSD falls below the 38.2% retracement support

Written September 7, 2010 at 10:13 AM EST by  

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The GBPUSD is moving below the 38.2% retracement of the move up from the May 2010 low of 1.4229 to the August high of 1.5996. The key Fibonacci level comes in at the 1.5321 level. 

If the price can remain below this key level the bias remains to the downside with a move toward 1.5282 being  the next downside target to get through (keeping the bearish move on track). This is support that connects the lows from the August 24th and August 31st lows off the hourly chart (see trendline below).  Additional support below comes on the parellel channel trendline off the daily chart above at the 1.5233 level.  A break of 1.5282 would target this level.  

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A move back above the 1.5321 resistance level would likely disappoint the sellers with a  move through the 1.5336-43 area leading to further short covering for the pair today.

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