Updating time : 10/03/2008 00:30 GMT

GBP/USD - 2.0193...The British pound rallied abv 1.9960/72 (now sup) last week on the back of dollar's broad-based selloff (in line with recent weak U.S. economic data including Friday's non-farm payrolls) n price hit a two-and-a-half month high at 2.0217 on Friday b4 retreating to 2.0117 on position squaring.

Looking at the daily chart, cable's rise fm Jan '08 low at 1.9337 is retracing the entire decline fm last year's top at 2.1162 n further gain t 2.0250 (50% r of 2.1162-1.9337) n then twd 2.0371 (1.618 times ext. of 1.9337-1.9960 fm 1.9363) is seen, however, the overbought readings on daily stochastics shud limit upside to 2.0465 (61.8% r of 2.1162-2.0337).

Below 2.0117 wud signal a temporary top has been formed n bring correction to 2.0056 (50% r of 1.9895-2.0217) but only break of 1.9970/72 (50% r of 1.9722-2.0217) wud indicate aforesaid upmove fm 1.9337 is being retraced, 1.9895.

Today, as cable has moved higher in Australia on cross buying in sterling n marginal gain abv 2.0217 cannot be ruled out, the bearish divergences on the hourly oscillators shud cap upside below 2.0270/80 n yield a retreat later...