Updating time : 09/11/2007 00:43 GMT

GBP/USD - 2.1096... Despite initial brief drop to 2.0971 in Australian morning y'day, buying interest emerged there n the British pound ratcheted higher to a fresh 26-year high of 2.1117 due to dollar's broad-based weakness in Europe before trading sideways later in NY afternoon session.

Although cable's o/n retreat suggests minor consolidation wud be seen, as long as y'day's low at 2.0971 holds, upside bias remains for recent uptrend to resume n extend twd 2.1150, being 62% proj. of the nr term rise fm 2.0782-2.1072 measured fm 2.0971, however, as hourly oscillators' readings wud display bearish divergences on such move, further strg gain abv there is unlikely to be seen today n reckon 2.1195/00 wud cap upside n yield minor correction later.

In view of the abv analysis, we have given a 'buy on dips or sell on next rise' daily strategy on cable. On the downside, a daily close below said y'day's low wud signal a temporary top is finally in place n retracement to 2.0907/10 (prev. chart res n 62% r of 2.0782-2.1117) cannot be ruled out, however, reckon sup at 2.0850 shud hold n yield another upmove next week...

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