Successive bottoms around 1.6465, 1.6555 and 1.6665 (corresponding to the depicted uptrend line) held price above and provided enough buying pressure to keep pushing higher.
However, In May, the bullish momentum wasn't strong enough to allow the bullish breakout above 1.7000 to pursue towards further targets. Instead, this previous breakout lost its bullish momentum showing successive lower highs that temporarily managed to breakdown the depicted uptrend line.
Again the GBP/USD pair showed bullish recovery around 1.6690 which was followed by strong bullish pressure being applied to push above 1.7000 (prominent top established on May 6).
If the bears keep pushing lower preventing any bullish breakout above 1.7000, the pair will have obvious targets around 1.6900 initially.
Note that the Friday's candlestick came as a "bearish engulfing" followed by the Monday's candlestick which topped at 1.7050 where significant bearish pressure was applied to push lower.
These bearish signals enhance the bearish side of the market at such prominent SUPPLY levels. However, yesterday's candlestick was controversial so today's candlestick closure should be assessed for this scenario.
The bulls managed to re-fixate above the previously broken uptrend line. Moreover, they are challenging the recent top around 1.7020 - 1.7040.
The fact that the bears managed to maintain the 4H fixation below 1.6970 - 1.7000 ( lower limit of the depicted channel ) suggests a bearish move towards 1.6870 - 1.6830 where 61.8% and 50% Fibonacci Levels are located.
A possibility of upcoming change of short-term trend remains intact. Price level 1.6970 should be watched for price action at retesting.
On the other hand, bullish fixation above 1.7000 will enhance the bullish channel scenario, thus enabling the bulls to reach 1.7090 and probably 1.7130 before bearish correction takes place.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Intraday technical levels and trading recommendations on GBP/USD for June 27, 2014 . Thanks for your support on Intraday technical levels and trading recommendations on GBP/USD for June 27, 2014
No comments:
Post a Comment