GBP/USD intraday technical levels and trading recommendations for February 10, 2014.
February 11, 2014 8:05 am
The GBP/USD pair failed to fixate above 1.6600 on January 24. Instead, a strong bearish impulse was initiated quickly pushing the pair towards 1.6250.
Around 1.6250, previous multiple tops as well as a recent bottom were established. That’s why a considerable support was provided there.
On the 4H chart, a price zone of 1.6250 – 1.6200 corresponds to the backside of the upper limit of a broken bearish channel. Bullish pressure was expressed on retesting during last week.
An inverted bullish Head and Shoulders pattern was expressed around 1.6220 probably aiming towards 1.6450-1.6500 “prominent resistance zone”.
This bullish view remains valid as long as 1.6220-1.6200 remains defended by the bulls.
On the other hand, breakdown of 1.6200-1.6250 on a daily basis turns the ongoing bullish bias into a bearish one targeting at 1.6140 initially rendering the current bullish formation an “expanding wedge” reversal pattern.
The material has been provided by InstaForex Company – www.instaforex.com
The GBP/USD pair failed to fixate above 1.6600 on January 24. Instead, a strong bearish impulse was initiated quickly pushing the pair towards 1.6250.
Around 1.6250, previous multiple tops as well as a recent bottom were established. That’s why a considerable support was provided there.
On the 4H chart, a price zone of 1.6250 – 1.6200 corresponds to the backside of the upper limit of a broken bearish channel. Bullish pressure was expressed on retesting during last week.
An inverted bullish Head and Shoulders pattern was expressed around 1.6220 probably aiming towards 1.6450-1.6500 “prominent resistance zone”.
This bullish view remains valid as long as 1.6220-1.6200 remains defended by the bulls.
On the other hand, breakdown of 1.6200-1.6250 on a daily basis turns the ongoing bullish bias into a bearish one targeting at 1.6140 initially rendering the current bullish formation an “expanding wedge” reversal pattern.
The material has been provided by InstaForex Company – www.instaforex.com
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