In this monthly chart you can see that the GBP reached the all time high a few weeks ago and then regressed back down a little. It looks like it is time for reversal. Notice the Fibonacci retracements. The 38.2 level is at around 1.96 which is also the resistance line at 2004-05. Notice that the RSI went above 70 and is now under which is a good sign for reversal (Just like it happened twice in 2004). Now it will probably take a few months to happen but I think traders should keep an eye out for it.

Views: 334

Reply to This

Replies to This Discussion

Looked at it...yeah..I guess if you put a fib. retracement on anything you'll find something. Not sure if I would post a call out on this...being that it's on a monthly chart with such little data. It's not that I disagree with you, but it's not really going out on a limb either. You are pretty much saying that one day...way down the line...the GBP will go to 1.96. Sure...why not.

I don't even need a 50% retracement to tell me that. Don't get caught short though!

Andy

P.S. keep up the writing and I hope you don't mind my cynical tone...it just makes it more fun...and it's also 4 something a.m. and it keeps me awake!
No problem.

It's not a prediction but a suggestion/question, that is why I added the "?" at the end...
I just think that it is highly probable based on the chart.

By the way what are you doing up at 4.00am???
I hope you are still up to read it...:-)
I am up for Euro/Asian market sessions from 2am - 10am AZ time...fun stuff!

I gotcha...wouldn't make a trade off of a monthly chart, but I don't think that's what you were suggesting. Just opening up dialogue, which worked! Nice one!

Andy

What are you doing up? Where are you in the world?
I am in Israel. It's 3:30 pm here.
It is probably the best place to be for forex trading. 9-12 am I get the euro/assian and 3-6 pm I have the euro/USA.
tov m'ode!
GBP at 2.0370...700 pips to go. :-)
Hi Andy

Looks like cable is down...:-)
GBP/USD at 1.9944! 344 pips to go..
Currently it is at 1.8048. GBP/USD is in a consolidation after the last bullish movement. The volatility is high. Oscillators are neutral. The price should find a support above 1.8000. The price should continue to move in Bollinger bands. Not the correct time to take position......

Resistances
1,8125 - 1,8250
Supports
1,8000 - 1,7740
Hi there Interesting analysis...


EUR/USD Chart analysis

I revisit the EURUSD chart for the umpteenth time lately. The 21-day SMA (in blue on the chart below) held miraculously once again on Friday and now lies at 1.2775. Clearly, the bulls will need for that one to give way before generating any upside argument. Meanwhile, the daily trading ranges are constricting a bit, and the bears need for 1.2400/1.2330 to fall for another leg down and perhaps a try at the 1.2000 area initially. We lean to the downside argument for now.
chart taken from: http://www.finexo.com/
Good analysis. I think that the EUR / USD is heading to 1.1640 which is the major support from December 2005. Two minor supports on the way: 1.2320 and 1.2000

RSS

Featured Brokers

© 2019   Created by Sam Wexler.   Powered by

Badges  |  Report an Issue  |  Terms of Service