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British Pound Longs Tuned Out To Be Long And Wrong

By Sam Shenker
01 July 2005 08:36 GMT
 As cable traders continue to unwind their positions, dollar longs will most likely push the pair toward the 1.7500, next psychologically important level, which holds the key to the 1.7000 handle. Indicators signal failing trend with ADX (DMI) falling to 20.65. Stochastic is neutral on the daily chart at 46.73 while on the (4HR) dealer chart, Stochastic is in oversold territory at 11.27. RSI is approaching the oversold level at 32.20 on the daily chart and is far below the oversold line at 20.35 on the 4-hour chart. MACD has made a bearish crossover below the zero line on the daily chart and is pointing downward below the zero line on the (4HR) chart.

 
Key levels

 
Level
Resistance
Details
1.8127
Major
5-day SMA
1.7997
Intermediate
June 13 daily spike low
1.7928
Minor
78.6 Fib of the 1.7485-1.9553 GBP rally
Level
Support
Details
1.7717
Minor
Sep 8 daily low
1.7638
Intermediate
May 20, 2004 daily spike low
1.7581
Major
Apr 29, 2004 daily spike low

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01 July 2005 08:36 GMT