31 Aug 2007

US Market shows mix feelings last night, though the European and Asian market traded stronger yesterday (profit taking). The market may show a mix today with everyone trading with caution.

In the daily chart, for GBPUSD a hammer was formed. WMA5 still sandwich between EMA55 and EMA100. Throughout the last 3 days the price has been moving side way. I am expecting a breakthrough. Using a fibonachi retracement, the support line is at 2.0200, above the EMA55 line, while the support is at 2.0013, below the EMA100 line. But even should the price fall below 2.0013, the next support line is at the EMA200 at 1.9900.