The GBP/USD pair started the new year with a sharp bullish move above 1.6300. As we see on the daily chart, the last push has ended up expressing significant bearish price action indicating a false break above 1.6300 establishing a significant resistance zone.
It is important to note that the pair has already broken down a long-term uptrend line that came to meet the pair around 1.6000.
The pair was trapped within narrow range 1.5800 - 1.5890 after finding temporary support at psychological level 1.5800. However, bearish breakout took place last week opening the way towards projection target around 1.5725 which was hit yesterday.
The pair remains under heavy SELLING pressure, as recovery attempt from 1.5680 zone is failing to push the pair above 1.5750 level. This week started with manifest weakness, although weekly closure came slightly above 1.5800; weekly gap added further bearish domination focusing initially on 1.5700 target.
Brief consolidation around 1.5700 is expected, as indicators are entering oversold state.
Theoretically speaking, the pair has confirmed a giant "double-top" pattern to be targeting 1.5350 as long as the pair is consolidating below neck-line around 1.5830.
The material has been provided by Instaforex Company - http://www.instaforex.com/
For detail explanation and best discovery on market trends you may visit via GBP/USD intraday technical analysis and trading recommendations for January 29, 2013 . Thanks for your support on GBP/USD intraday technical analysis and trading recommendations for January 29, 2013
No comments:
Post a Comment