GBPUSD - Weekly Strategy (04-08 Mar 2013)

Recommendations: SHORT positions below 1.5220 with 1.5000 & 1.4900 as next targets.
Alternative scenario: The upside breakout of 1.5220 will call for a rebound to 1.5320/460.
Description: The GBPUSD continued its bearish momentum last week, and broke below 1.5000 levels,this scenario suggests more downside loses, so far I don't see any sign of bottoming , from the 15 min till the daily chart, the pair is strongly bearish,the 4 hour chart suggests possible rebound to 1.5150/220 levels before forming a lower leg below 1.5000, but a 4 hour close above 1.5080 is indeed to retest 1.5150/220 levels. keep in mind stability below 1.5220 is indeed to keep the bearish trend intact, sustained break above 1.5220 will confirm bottoming and take us to the neutral zone and open the way towards 1.5320/460 levels.

Best Regards

Haitham

Tags: GBP/USD, GBPUSD.

4 members like this

Comment by Haitham653 on March 3, 2013 at 6:00pm: Note: 4 hour close above 1.5080 will give us some bullish momentum ,If seen you can short after rejection from 1.5220/1.5147 or to minimize risks , you can put pending order "sell limit" at 1.4975 with target at 1.4900 and 1.4800, stop at 1.5010..

The idea: 4 hour close above 1.5080 followed by a break below 1.4985 will bring strong bearish momentum towards 1.4900/800 levels..