The British pound was the most vulnerable currency at yesterday’s session. Selling the pound leveled all its last Friday gains and almost returned to levels at which it was a week ago. The currents doubts about recovery processes are not so encouraging than they used to be harming the British currency in times of uncertainty are pushing the market to sales.
Breakthrough of the level 1.6465 was on the rising volume, this is a good signal for the British pound growth.
The nearest growth target is the intermediate resistance level 1.6525. Still if the pair returns to a decrease it will go to 1.6313.
The sterling spent the last session in a narrow side corridor versus the “green”, but it was closed with small losses unlike the Euro. The news absence left the pound under the influence of external factors during two sessions in a row.
The pound is traded at 1.6410. Each retest level is accompanied with a small bounce up and with a return of price rates back to the level. There is a consolidation in the area 1.6360–1.6320.
When the prcie breaks 1.6313, the way to a strong daily support level 1.6220 will be opened.
I’m waiting for this pair to move back to resistance at 1.6600 where I will look for short setups - trading the daily timeframe for high probability trades - lost too much money chases intraday moves so far!
The pound fell down as other currencies. The central Bank has been waiting such a turn as a strong pound is a risk to an economic recovery.
The pair managed to overcome the resistances 1.6555, 1.6500, 1.6470.
The pair still continues an ascending trend. The main target of the growth is the level 1.6705.
But, as you can see the growth is almost canceled. Now we are waiting when the pair shows itself. To continue a decrease the pair needs to break through the cloud down. This correction may last to 1.6150 or possibly lower.
On the bigger timeframe, a potential head and shoulders bearish pattern is forming. In the present moment, GBPUSD is forming the right shoulder. The price action in week 07 and week 08 should determine the validity of the right shoulder.
If you are bearish GBPUSD, then it is prudent to find proper price zones to short GBPUSD. On the formation of the right shoulder, there is a possibility to short at the bearish bat harmonic pattern. With a confluence of 2 very strong technical indicators, i.e. the head & shoulders pattern and the bearish bat harmonic pattern, the chances of a winning trade for this setup is high.
SHORT GBPUSD 1.6620
SL 50pips
TP1 1.6250
TP2 1.6000
The pound keeps trying to grow. The British currency grew last Friday versus the dollar regaining the previous day’s losses. Yesterday during the European session, like the euro, the pound was under short-term pressure.
The 1.6264 retest did not happen. This level consolidation caused a bounce up. I expect a growth to 1.6484 – 1.6500 in a short-term. If the pair breaks 1.6500 it may go to 1.6644.
The British pound in the previous session rallied versus its all major opponents. The interest to the pound as to the most profitable currency now could be sustained with optimism on stock markets.
Only the break below 1.6200 cancels the positive expectations and will open the way to further decline to the support 1.5850-1.5915.
Volumes remain at growing level. The pair is growing having reached a new maximum. The pair may grow to 1.6670. We expect a bounce back then.
The British pound fell versus the dollar. The pair continues to gradually consolidate after an unsuccessful attempt to break above the resistance 1.6750. The potential target for the correction is 1.6200.
A good rebound occurred from the resistance level 1.6800. Virtually no corrective movements British approached the level of 1.6640. The upward trend is still relevant. The main support level 1.6640 is not broken yet.
It is possible that the correction is over, and from current levels the uptrend will consolidate above the resistance 1.6750 and continue growing to the next important resistance 1.7040.
Bounced off the level 1.6620, the British pound fell to the support level 1.6670 having broken it down. The immediate support is the level 1.6470.
The upper bound of a downtrend channel 1.6685 is a good. This level false retests would lead to the continuation of a downward price correction. The potential target will be 1.6550.
British pound grew up versus the dollar last Friday, but it was less popular than the euro. The pound remained consolidated in a narrow sideways range versus the dollar. Today, the news in England are not expected, the pound will remain under the influence of an external events.
In the medium term the trend remains upward. To continue the downward trend sellers need to break and consolidate below the support level 1.6600. In this case, the way to the level 1.6500 will be opened.
Agreed for the most part - I’ve been breaking the price action down pretty hardcore - if you’re interested in seeing it and commenting, that’d be great. I’d like to hear your opinions on my analysis: GBPUSD turning over?
The GBPUSD was indecisive yesterday. The bias is neutral in nearest term. Important intraday range to be closely watched is seen between 1.6550 – 1.6450. A clear break above 1.6550 could trigger further bullish pressure testing 1.6600 or higher. On the other hand, a clear break below 1.6450 could trigger further bearish pressure testing 1.6400 or lower.
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The British pound continues growing versus the dollar. Lack of negative economic data and any expectations about the BoE politics in the U.K., supported the “cable”. The pair got an impulse to buying from the Fed representative D. Yellen who stated with some pessimism about uncertainty of the U.S. labor market recovery.
After the level 1.6600 break up, new buying targets will be opened. But before this the British pound will continue to grow up, it is necessary to observe the maximum yesterday update 1.6683. The yesterday’s trading session high level update will lead to the upward trend continuation.
The main goal of the growth should become the resistance level 1.6730.
As it was mentioned in the previous technical analysis of GBP/USD pair dated 2014.03.11, according to the formed technical signs, there was the potential for descending of price which finally happened.Sellers were successful in achieving the lowest level of 1.64661.Right now price is above 5-day moving Daily and H4 time frames that show an uptrend during the next candles.Price has formed a Top price with reaching to the specified resistance zone in the picture below and it has stopped from more ascend and has started a little descend with shows exit of some buyers from their trades.
According to the formed price movements in the chart, between the bottom price of 1.64661 and top price of 1.68209 ,there is AB=CD harmonic pattern with ideal ratios of 61.8 and 161.8 that with completion of the D point there will be a warning for descending of price.RSI indicator in H4 time frame is in saturation Buy area that confirms the current top price and warns about changing price direction.Generally until the top price of 1.68209 is preserved, price has the potential of descending. Currently the first sign for buyers is breaking of the D point of harmonic pattern in the price chart.
The pound also spent the last session in the lateral trade and as the euro, prices closed the day at the dispute with the dollar. However, the pair showed a quite multidirectional activity after the UK news was published.
The market is not ready to decrease. We should expect a continued growth in the near future. If buyers are able to break above 1.6800, the next target will be 1.6850.
