Objective Met: Correction from 1.4784 may have ended (140 Pips Profit)

Writtern by www.imperialFXonline.com

Time: May 6th 2010, 15:05GMT

Rate : 1.4960
Strategy : Target Met
Position : Short at 1.5100
Objective : 1.4960

Resistance levels : 1.5281 / 1.5391 / 1.5498 / 1.5524 / 1.5576
Support levels : 1.4955 / 1.4784 / 1.4718 / 1.4541 / 1.4398

  • Below 1.5000 level leads further losses towards 1.4955 ahead of 1.4900
  • Only a move above 1.5281 alleviates current downward pressure



Sterling has followed the euro lower as risk aversion prompts investors to flee to safe-haven assets and the complex corrective decline unfolding from 1.5524 (April 15) has the potential to extend to the 1.5000 level, however, a sustained move below there is needed to call for an end to the correction from the March low of 1.4784 and lead to an eventual resumption of downtrend with scope for more losses to a fibonacci retracement level at 1.4942.

We are lowering our sell entry and only above the minor resistance at 1.5281 would call for a temporary low formation and result in a stronger upward retracement to 1.5310/20.


Writtern by www.imperialFXonline.com

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