Today's Market View - GBPUSD

The American Dollar moved up in the Asian market since investors related to measures of the American government to Fannie Mae and Freddie Mac with careful optimism. In the last week the market was shocked by information that two financial institutes financed by the state can be nationalized. After that the government announced the purchase of a national creditor IndyMac that suffered losses. Today the market recovered position, reacting to the operations, undertaken by the US government on Sunday and, directed to stabilisation of the situation.

At the beginning Dollar/Yen fell to the minimum to Y105.96 because for fear of financial stabilisation in the US. Then the currency pair rebounded its position to 106.71 as FRS and US Treasury described the plan of recovering lost confidence. Exporters sell the Dollar above Y106.70, bids at the level of option barrier, existing at the level at Y105.800-90. Euro/Dollar hit a new record high above the 5-day maxima at $1.5949. But the Dollar strengthened by operations and announcement of the US government recovered its position and the pair quoted now at $1.5874. In the European market the Dollar keeps its position in the Asian market.

The Chart in GBPUSD forms bearish divergence, but the Pound keeps position above 21-day moving average which gives additional support for 5-day moving average at $1.9780/00. A support line of envelope goes through at the level $1.9625/50 and Fibonacci below.

RES 4: $2.0192 maximum of 27 Mar.
RES 3: $2.0022/28 maximum of 21 Apr., 1% envelope
RES 2: $2.0002/05 61.8% Fibonacci, maximum of 1 Jul.
RES 1: $1.9956 maximum of 11 Jul. and 200-day MA

current price: $1.9851

SUP 1: $1.9796 промежуточная поддержка от 9 июля
SUP 2: $1.9625/50 1% envelope, minimum of 7 Jul.
SUP 3: $1.9588 minimum of 23 Jun.
SUP 4: $1.9430/68 2% envelope, minima of 16, 17 Jul.