#GBPUSD Outlook

The Pound continues its way down since the trend line that extended from the low of Jan 31st on was taken out. It appears to be channeling down on the 60 min time frame. It also has reached a support level @ 1.5936. This support probably won't last too long as this pair seems to be destined to head to lower levels.

The daily chart demonstrates the closet support levels. While 1.6058 is the closest resistance level.

The weekly charts shows price action inside a triangle consolidation pattern. If July does not exceed the high of the year so far, most likely we will see this pair go for that lower trend line.

We could be bullish for another day, however, downtrend will most-likely resume.

I expect this pair to change the main move of the year before its the end of the year.

The 60 min. chart showing price action inside a channel. Lower lows are expected.

The daily chart showing some support/resistance levels as well as the Measured Objective Target for the broken pattern.

The weekly chart showing price inside a triangle pattern.

Views: 14

Comment by Trebs Acre on June 29, 2011 at 8:48pm

Hello Sir, any updates on GU?



Comment by mcapitalmarkets on June 29, 2011 at 11:16pm
Sorry, I have a cold at the moment. It seems that GU is making an attempt to break a resistance which is the top of 23/06/2011. However, a bullish MACD divergence was satisfied today and price is now inside a bearish wedge formation observed on H1. So I believe this pair will drop in the near term towards the 1.5878 level and after that it should go back up towards the 1.6260 level before doing anything else. In any case, it's better to open positions in the direction of the main move.
Comment by Trebs Acre on June 29, 2011 at 11:54pm

You're a great guy, thanks.

I plan to short GU at1.6087


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