Intraday technical levels and trading recommendations for GBP/USD for January 7, 2014
January 7, 2014 3:30 pm
The daily chart shows the GBP/USD pair is moving within an expanding wedge pattern since September 10.
Daily breakthrough above 1.6240-1.6300 took place in December where another consolidation range was established between 1.6240-1.6450 until the last bullish impulse was initiated towards 1.6570-1.6600 in an attempt of bulls to record new highs in 2013.
The last bearish rejection took place on Thursday when bearish pressure was applied off the level of 1.6600 (the upper limit of the expanding wedge) resulting in a bearish engulfing daily candlestick.
Yesterday, the market expressed a bullish daily hammer candlestick after testing 1.6336 as a daily low for Monday. This indicates temporary bullish rejection that may hinder the ongoing short-term bearish advancement.
The nearest dependable DAILY demand (support) level is located at 1.6250. That’s where we should be looking for a bullish opportunity with tight SL below 1.6200.
The bulls failed to maintain sufficient bullish pressure to push above 1.6600. Instead, a double-top pattern was expressed. This reversal pattern succeeded in hitting its projection targets at 1.6340.
Fundamentally, Motor Manufacturers and Traders Association released today that British new cars sales in 2013 rose by 11% compared to 2012, reflecting the availability of financial offers as well as increased demand for more technologically advanced cars. This already exceeded expectations reaching higher values since 2007.
This gave a bullish push to the market failing to reach its destination near 1.6300-1.6250. Instead, a temporary low at 1.6340 was established Yesterday. This may initiate a bullish retracement towards 1.6440-1.6470.
Tech. recommendations: the market may offer a valid opportunity to BUY the GBP/USD pair at retesting of 1.6250-1.6300 with SL as daily closure below 1.6220.
The material has been provided by InstaForex Company – www.instaforex.com
The daily chart shows the GBP/USD pair is moving within an expanding wedge pattern since September 10.
Daily breakthrough above 1.6240-1.6300 took place in December where another consolidation range was established between 1.6240-1.6450 until the last bullish impulse was initiated towards 1.6570-1.6600 in an attempt of bulls to record new highs in 2013.
The last bearish rejection took place on Thursday when bearish pressure was applied off the level of 1.6600 (the upper limit of the expanding wedge) resulting in a bearish engulfing daily candlestick.
Yesterday, the market expressed a bullish daily hammer candlestick after testing 1.6336 as a daily low for Monday. This indicates temporary bullish rejection that may hinder the ongoing short-term bearish advancement.
The nearest dependable DAILY demand (support) level is located at 1.6250. That’s where we should be looking for a bullish opportunity with tight SL below 1.6200.
The bulls failed to maintain sufficient bullish pressure to push above 1.6600. Instead, a double-top pattern was expressed. This reversal pattern succeeded in hitting its projection targets at 1.6340.
Fundamentally, Motor Manufacturers and Traders Association released today that British new cars sales in 2013 rose by 11% compared to 2012, reflecting the availability of financial offers as well as increased demand for more technologically advanced cars. This already exceeded expectations reaching higher values since 2007.
This gave a bullish push to the market failing to reach its destination near 1.6300-1.6250. Instead, a temporary low at 1.6340 was established Yesterday. This may initiate a bullish retracement towards 1.6440-1.6470.
Tech. recommendations: the market may offer a valid opportunity to BUY the GBP/USD pair at retesting of 1.6250-1.6300 with SL as daily closure below 1.6220.
The material has been provided by InstaForex Company – www.instaforex.com
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