GBP/USD intraday technical and fundamental review for May 8, 2013
May 8, 2013 9:15 am
Last week, there was a supply zone located around 1.5550-1.5600 corresponding to the upper limit of the depicted bullish channel which expressed bearish rejection on testing.
The GBP/USD pair is still trading within the same consolidation range 1.5480-1.5590. However, the cable expressed daily closure below 50% Fibonacci (1.5500) which is an early sign for a possible breakout.
By breakdown of Fibonacci 50 level, the cable has its way opened towards 1.5380-1.5400, the upper limit of previous consolidation range.
Resistance levels: 1.5650 and 1.5850. Support levels: 1.5380, 1.5230, and 1.5030.
Stabilization of the supply zone at the upper limit of the channel at 1.5590 allows a double top reversal pattern to be anticipated and confirmed with 4H closure below 1.5480, the bearish momentum will be targeting at 1.5430, 1.5365 then at 1.5200.
Price Zone 1.5480-1.5500 (the key zone to be watched) has been broken down. Hence, we got a bearish breakout off the bullish channel depicted on the 4H chart.
Retesting of the backside of the broken channel around 1.5500-1.5520 will probably provide a valid short entry with SL located above 1.5565.
The cable has dependable demand level around 1.5380 where profit should be taken there with careful watching of price action there as it may provide Long entries.
Today, the UK has two critical data releases related to unemployment and change in employment rates (Quarterly), so traders should be cautious and stick to Stop Losses.
The material has been provided by InstaForex Company – www.instaforex.com
Last week, there was a supply zone located around 1.5550-1.5600 corresponding to the upper limit of the depicted bullish channel which expressed bearish rejection on testing.
The GBP/USD pair is still trading within the same consolidation range 1.5480-1.5590. However, the cable expressed daily closure below 50% Fibonacci (1.5500) which is an early sign for a possible breakout.
By breakdown of Fibonacci 50 level, the cable has its way opened towards 1.5380-1.5400, the upper limit of previous consolidation range.
Resistance levels: 1.5650 and 1.5850.
Support levels: 1.5380, 1.5230, and 1.5030.
Stabilization of the supply zone at the upper limit of the channel at 1.5590 allows a double top reversal pattern to be anticipated and confirmed with 4H closure below 1.5480, the bearish momentum will be targeting at 1.5430, 1.5365 then at 1.5200.
Price Zone 1.5480-1.5500 (the key zone to be watched) has been broken down. Hence, we got a bearish breakout off the bullish channel depicted on the 4H chart.
Retesting of the backside of the broken channel around 1.5500-1.5520 will probably provide a valid short entry with SL located above 1.5565.
The cable has dependable demand level around 1.5380 where profit should be taken there with careful watching of price action there as it may provide Long entries.
Today, the UK has two critical data releases related to unemployment and change in employment rates (Quarterly), so traders should be cautious and stick to Stop Losses.
The material has been provided by InstaForex Company – www.instaforex.com
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