GBP/USD intraday technical levels and trading recommendations for November 5, 2013
November 5, 2013 2:15 pm
Daily closure above 1.5720 (the highest level in August) enhanced further bullish pressure to be applied, so that the bulls could step above 1.5760 (the highest level in June).
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 is establishing a bearish Head-and-Shoulders pattern with right shoulder located around 1.6200. 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.
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.
Fundamentally, Sterling Pound traded near its lowest level in two months against the euro in trading on Wednesday; reflecting concerns about growth and maintaining strong British economy during the past few months then today Sterling rose against the U.S. dollar after a survey showed that the service sector has shown an economic growth.
Failure to breakdown 1.5900 level was observed Yesterday. Instead, bullish rejection lead to another bullish swing towards 1.6040-1.6060 again ( Retesting of the most recent supply zone ).
A breakthrough above 1.6060, which is not expected, will lead to another bullish swing towards 1.6190 again (127.2% Fibo Expansion), where intraday resistance should be applied.
The material has been provided by InstaForex Company – www.instaforex.com
Daily closure above 1.5720 (the highest level in August) enhanced further bullish pressure to be applied, so that the bulls could step above 1.5760 (the highest level in June).
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 is establishing a bearish Head-and-Shoulders pattern with right shoulder located around 1.6200. 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.
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.
Fundamentally, Sterling Pound traded near its lowest level in two months against the euro in trading on Wednesday; reflecting concerns about growth and maintaining strong British economy during the past few months then today Sterling rose against the U.S. dollar after a survey showed that the service sector has shown an economic growth.
Failure to breakdown 1.5900 level was observed Yesterday. Instead, bullish rejection lead to another bullish swing towards 1.6040-1.6060 again ( Retesting of the most recent supply zone ).
A breakthrough above 1.6060, which is not expected, will lead to another bullish swing towards 1.6190 again (127.2% Fibo Expansion), where intraday resistance should be applied.
The material has been provided by InstaForex Company – www.instaforex.com
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