GBP/USD intraday technical levels and trading recommendations for October 8, 2013
October 8, 2013 3:30 pm
Strong bullish sentiment was found in the support zone around 1.4830, which pushed the pair to the upside reaching 1.5400 then 1.5700 where two prominent tops were established.
The uptrend line around 1.5430-1.5400 applied bullish pressure on the pair which was able to break trough 1.5720 which corresponds to August’s highest level and the recently established top.
The market expressed obvious closure above 1.5575 which invalidated the previously mentioned H&S reversal pattern. This opened the way towards 1.6000, 1.6170 then 1.6260.
It is important to note that the market expressed bearish rejection off 1.6150 which resulted in an inverted hammer WEEKLY candlestick. That is why, bearish movement was expected to take place during this week provided that the bears remain defending the weekly high at 1.6150. However, lack of bearish momentum enhanced by the weakness of the USD allowed the bulls to step above 1.6200 (127.2% Fibo Expansion) for a short-time until bearish domination came back into the market.
The pair is probably establishing a Head and Shoulders reversal pattern where the right shoulder is expected to be located around 1.6160-1.6175 just few pips below Fibonacci Expansion 127.2%, thus providing a valid SELL entry with SL located above 1.6210.
Fibonacci expansion 100% is located at 1.6040 where last friday’s recent low is located. Stablilization above this level opens the way back towards 1.6160-1.6175. However, early breakdown of 1.6040 will enable the bears to initiate a bearish swing towards 1.5900 initially.
The material has been provided by InstaForex Company – www.instaforex.com
Strong bullish sentiment was found in the support zone around 1.4830, which pushed the pair to the upside reaching 1.5400 then 1.5700 where two prominent tops were established.
The uptrend line around 1.5430-1.5400 applied bullish pressure on the pair which was able to break trough 1.5720 which corresponds to August’s highest level and the recently established top.
The market expressed obvious closure above 1.5575 which invalidated the previously mentioned H&S reversal pattern. This opened the way towards 1.6000, 1.6170 then 1.6260.
It is important to note that the market expressed bearish rejection off 1.6150 which resulted in an inverted hammer WEEKLY candlestick. That is why, bearish movement was expected to take place during this week provided that the bears remain defending the weekly high at 1.6150. However, lack of bearish momentum enhanced by the weakness of the USD allowed the bulls to step above 1.6200 (127.2% Fibo Expansion) for a short-time until bearish domination came back into the market.
The pair is probably establishing a Head and Shoulders reversal pattern where the right shoulder is expected to be located around 1.6160-1.6175 just few pips below Fibonacci Expansion 127.2%, thus providing a valid SELL entry with SL located above 1.6210.
Fibonacci expansion 100% is located at 1.6040 where last friday’s recent low is located. Stablilization above this level opens the way back towards 1.6160-1.6175. However, early breakdown of 1.6040 will enable the bears to initiate a bearish swing towards 1.5900 initially.
The material has been provided by InstaForex Company – www.instaforex.com
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