GBPUSD--Wednesday, October 14, 2009
The market is still conforming to the downward impulsive pattern shown in charts yesterday.
Daily:
Once the 1.618 level around 1.5720 became support yesterday morning, it became very likely that the next Fibonacci level up, 1.272, would be visited again. This level is around 1.5940, and has proven to be an equilibrium level around which the market has oscillated since late September.
Seen on a 4 hour chart:
Having overshot that level overnight, it has now come down below it again.
A 1 hour chart:
We could play tag with this level for a bit.
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