GBP/USD intraday technical levels and trading recommendations for October 9, 2013
October 9, 2013 1:30 pm
Daily view:
The cable invalidated the previous reversal Head-and-Shoulders pattern maintaining quite strong bullish momentum to the upside.
Daily closure above 1.5719 (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 pair expressed a bearish Harami daily candlestick of 1.6150, which was followed by daily closure below 1.6035, which took place on Friday. However, the cable bounced from the recent lows resuming the upside momentum, having climbed back above 1.6200 as the USD weakened during the previous trading days.
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 1.6262б which is 70 pips higher than 127.2% Fibonacci Expansion Level. However, most of the daily gains was lost affected by ISM manufacturing PMI resulting in an inverted hammer daily candlestick on Tuesday.
On the next day, the pair expressed bearish engulfing candlestickб which enhanced further bearish pressure on the pair untill another bullish pullback took place this week.
A wider than expected trade deficit along with dismal UK industrial and manufacturing production data enhanced bearish pressure on the pair today to reach a daily low around 1.5950.
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 1.6285 again (141.4% Fibo Expansion), where intraday resistance should be applied.
The material has been provided by InstaForex Company – www.instaforex.com
Daily view:
The cable invalidated the previous reversal Head-and-Shoulders pattern maintaining quite strong bullish momentum to the upside.
Daily closure above 1.5719 (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 pair expressed a bearish Harami daily candlestick of 1.6150, which was followed by daily closure below 1.6035, which took place on Friday. However, the cable bounced from the recent lows resuming the upside momentum, having climbed back above 1.6200 as the USD weakened during the previous trading days.
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 1.6262б which is 70 pips higher than 127.2% Fibonacci Expansion Level. However, most of the daily gains was lost affected by ISM manufacturing PMI resulting in an inverted hammer daily candlestick on Tuesday.
On the next day, the pair expressed bearish engulfing candlestickб which enhanced further bearish pressure on the pair untill another bullish pullback took place this week.
A wider than expected trade deficit along with dismal UK industrial and manufacturing production data enhanced bearish pressure on the pair today to reach a daily low around 1.5950.
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 1.6285 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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