GBP/USD intraday technical levels and trading recommendations for November 11, 2013
November 11, 2013 4:30 pm
The previous bullish swing targeted 100% Fibonacci Expansion level. However, the current bullish swing was strong enough to bypass this level, when the pair stepped above 1.6035 recording a daily high at 1.6262, which is 70 pips higher than 127.2% Fibonacci Expansion level. However, most of the daily gains were lost resulting in an Inverted Hammer daily candlestick during the 1st week in October.
Price fixing above 1.5950 enabled the bulls to reach 1.6035, the nearest supply level followed by the retesting of 127.2% Fibonacci Expansion around 1.6220.
On October 23, the GBP/USD pair broke initially the 1.6200 handle touching the area as of 1.6250. However, signs of bullish failure are obvious on the chart.
The cable established a double top reversal pattern around 1.6200-1.6250. That is why, a valid sell entry was suggested at 1.6200 or after breakdown of the neck-line around 1.6000 – 1.5950 (for conservative traders) to have an estimated target around 1.5720 with SL as daily closure above 1.6250. Failure to break down the 1.5900 level was observed on Monday. Instead, bullish rejection led to another bullish swing towards 1.6040-1.6060 again (Retesting of the most recent supply zone).
The current bearish momentum needs to fixate below demand zone around 1.6040-1.6020 in order to pursue further bearish targets around 1.5720, especially after a descending top was established around 1.6110 representing the right shoulder of an atypical Head and Shoulders pattern.
A breakthrough below 1.5900 will lead to another bearish swing towards 1.5750-1.5730, where intraday support should be applied.
The material has been provided by InstaForex Company – www.instaforex.com
The previous bullish swing targeted 100% Fibonacci Expansion level. However, the current bullish swing was strong enough to bypass this level, when the pair stepped above 1.6035 recording a daily high at 1.6262, which is 70 pips higher than 127.2% Fibonacci Expansion level. However, most of the daily gains were lost resulting in an Inverted Hammer daily candlestick during the 1st week in October.
Price fixing above 1.5950 enabled the bulls to reach 1.6035, the nearest supply level followed by the retesting of 127.2% Fibonacci Expansion around 1.6220.
On October 23, the GBP/USD pair broke initially the 1.6200 handle touching the area as of 1.6250. However, signs of bullish failure are obvious on the chart.
The cable established a double top reversal pattern around 1.6200-1.6250. That is why, a valid sell entry was suggested at 1.6200 or after breakdown of the neck-line around 1.6000 – 1.5950 (for conservative traders) to have an estimated target around 1.5720 with SL as daily closure above 1.6250.
Failure to break down the 1.5900 level was observed on Monday. Instead, bullish rejection led to another bullish swing towards 1.6040-1.6060 again (Retesting of the most recent supply zone).
The current bearish momentum needs to fixate below demand zone around 1.6040-1.6020 in order to pursue further bearish targets around 1.5720, especially after a descending top was established around 1.6110 representing the right shoulder of an atypical Head and Shoulders pattern.
A breakthrough below 1.5900 will lead to another bearish swing towards 1.5750-1.5730, where intraday support should be applied.
The material has been provided by InstaForex Company – www.instaforex.com
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