GBP/USD intraday technical levels and trading recommendations for October 15, 2013
October 15, 2013 2:15 pm
Daily view:
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 affected by ISM manufacturing PMI resulting in an inverted hammer daily candlestick. On the next day, the pair expressed bearish engulfing candlestick which enhanced further bearish pressure on the pair until another bullish pullback took place last week. A wider than expected trade deficit along with dismal UK industrial and manufacturing production data enhanced bearish pressure on the pair last week to reach a WEEKLY low around 1.5918. The cable is probably establishing a bearish Head-and-Shoulders pattern with right shoulder located around 1.6120. That is why, a valid SELL entry is suggested after breakdown of the neck-line around 1.5950 to have an estimated target around 1.5720 with SL as daily closure above 1.6120. Price fixation above 1.5950 enables the bulls to reach 1.6035 the nearest SUPPLY level to meet the pair providing a valid sell entry with SL as daily closure above it.
Breakthrough above 1.6035 which isn’t expected will lead to another bullish swing towards 1.6285 again (141.4% Fibo Expansion), where intraday resistance should be applied.
The material has been provided by InstaForex Company – www.instaforex.com
Daily view:
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 affected by ISM manufacturing PMI resulting in an inverted hammer daily candlestick.
On the next day, the pair expressed bearish engulfing candlestick which enhanced further bearish pressure on the pair until another bullish pullback took place last week.
A wider than expected trade deficit along with dismal UK industrial and manufacturing production data enhanced bearish pressure on the pair last week to reach a WEEKLY low around 1.5918.
The cable is probably establishing a bearish Head-and-Shoulders pattern with right shoulder located around 1.6120. That is why, a valid SELL entry is suggested after breakdown of the neck-line around 1.5950 to have an estimated target around 1.5720 with SL as daily closure above 1.6120.
Price fixation above 1.5950 enables the bulls to reach 1.6035 the nearest SUPPLY level to meet the pair providing a valid sell entry with SL as daily closure above it.
Breakthrough above 1.6035 which isn’t expected will lead to another bullish swing towards 1.6285 again (141.4% Fibo Expansion), where intraday resistance should be applied.
The material has been provided by InstaForex Company – www.instaforex.com
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