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: 338

Reply to This

Replies to This Discussion

The GBP/USD market was trying to break the supportive level during the end of the previous week, but I don't really think it has enough energy to do it. So, I guess the chart will go up after the opening of the market.

Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3227.

The GBP/USD is moving near the floor and I really think that we need to be prepair to buy here. You'll see it.

Long entry following a convincing bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2104.

As we can see, the GBP/USD chart is acting in the lower part and I think the situation will remain the same for a while.

I've already mentioned that fact in the other thread, but I seems to have to duplicate it. I mean, com on guys! The GBP/USD goes almost flat now, who needs to trade on the market like that?

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2850 or 1.2610.

This pair remains in a long-term bullish trend but is still finding it difficult to rise, although it is strongly supported below at 1.2850.

A sudden spike up to 1.3000 or the area just underneath that price could be an excellent short, as there is strong long-term selling up there, and it is unlikely to break easily. The 1.3000 level has not even been touched so there should be plenty of limit sell orders sitting there.

GBP/USD LOOKING FOR A FOOTHOLD FROM 1.3250 FOLLOWING THURSDAY’S BEARISH OVERTURE

The GBP/USD is down into two-week lows heading into Friday’s London markets, near 1.3250 following Thursday’s intense drop-off.

The Sterling lifted on Thursday, climbing into 1.3446 following better-than-expected Retail Sales for the UK, but the bull ride was short-lived following a dovish showing from the European Central Bank’s Mario Draghi, who pushed out expectations of a rate hike for the EU into 2019. Markets recoiled at the news, reversing risk flows and sending traders piling into the Greenback.

The sell-off extended into the US session, with economic data for the US widely beating expectations, further driving the USD higher against the broader markets, and the GBP is slumping heading into the end of the week.

Friday is dry for the GBP, and the USD sees mid-tier Industrial Production for May at 13:15 GMT (forecast 0.2%, prev. 0.7%) and the Baker Hughes Oil Rig Count at 17:00 GMT, which last came in at 852 which could impact oil fluctuations to cap off the week.

GBP/USD levels to watch

Friday will be a bitter session for the Sterling, which finds itself forced to attempt to crawl out of a hole that appeared out of nowhere, and as Denis Joeli Fatiaki noted in his GBP/USD analysis, “the Pound against the US dollar had the same fate as the Euro during the European session after ECB’s decision to slow down QE in September and put an end in December. The Pound fell from1.34466 and pierced through six major support points before finding temporary relief at 1.32567 support. The Pound is now trading at 1.3250, and will need to hold above that for any possibility of starting the recovery. Failure to hold at 1.32505 could see prices fall further to 1.32382.”

Read more:www.xtreamforex.com

RSS

Featured Brokers

© 2019   Created by Sam Wexler.   Powered by

Badges  |  Report an Issue  |  Terms of Service