Intraday technical levels and trading recommendations on GBP/USD for June 4, 2014
June 4, 2014 12:20 pm
Previously, the bottoms around 1.6465 and 1.6555 (corresponding to the depicted uptrend line) prevented further bearish decline and provided enough buying pressure to keep pushing higher.
The bullish momentum wasn’t strong enough to allow the bullish breakout above 1.6880-1.6900 to pursue towards further targets. Instead, this breakout lost its bullish momentum showing successive lower highs as a part of a bearish reversal pattern as depicted on the chart.
Again, the GBP/USD pair showed bullish recovery after testing of 1.6690. This pushed the pair again towards 1.6750-1.6770 ( prominent SUPPLY level ).
If the bears manage to prevent any bullish breakout above the currently tested key-level around 1.6750, the pair will have obvious targets around 1.6670 initially then 1.6600 to be followed.
Note that the bears spiked down to 1.6697 earlier today and the bulls are showing prominent bullish rejection which is manifested in the current daily candlestick so far.
The bulls managed to record a higher value above the recent one at 1.6900. However, the ongoing demand has been fulfilled around 1.6920 which led to a price decline again.
Bearish breakdown of 1.6825-1.6800 ( which means breakdown of the previous congestion zone as well ) exposed price level of 1.6740 for breakdown.
Price zone of 1.6750-1.6770 corresponded to lower limit of the ongoing channel. However, it has been broken down previously this week.
This enhances the bearish momentum on the short-term prospective as long as the bears remain defending 1.6800 and also provides a SELL opportunity at retesting with SL located just above 1.6800.
Management of the bears to maintain 4H fixation below this price zone suggests a bearish limb towards 1.6650 ( previous bottom depicted on the chart ).
The material has been provided by InstaForex Company – www.instaforex.com
Previously, the bottoms around 1.6465 and 1.6555 (corresponding to the depicted uptrend line) prevented further bearish decline and provided enough buying pressure to keep pushing higher.
The bullish momentum wasn’t strong enough to allow the bullish breakout above 1.6880-1.6900 to pursue towards further targets. Instead, this breakout lost its bullish momentum showing successive lower highs as a part of a bearish reversal pattern as depicted on the chart.
Again, the GBP/USD pair showed bullish recovery after testing of 1.6690. This pushed the pair again towards 1.6750-1.6770 ( prominent SUPPLY level ).
If the bears manage to prevent any bullish breakout above the currently tested key-level around 1.6750, the pair will have obvious targets around 1.6670 initially then 1.6600 to be followed.
Note that the bears spiked down to 1.6697 earlier today and the bulls are showing prominent bullish rejection which is manifested in the current daily candlestick so far.
The bulls managed to record a higher value above the recent one at 1.6900. However, the ongoing demand has been fulfilled around 1.6920 which led to a price decline again.
Bearish breakdown of 1.6825-1.6800 ( which means breakdown of the previous congestion zone as well ) exposed price level of 1.6740 for breakdown.
Price zone of 1.6750-1.6770 corresponded to lower limit of the ongoing channel. However, it has been broken down previously this week.
This enhances the bearish momentum on the short-term prospective as long as the bears remain defending 1.6800 and also provides a SELL opportunity at retesting with SL located just above 1.6800.
Management of the bears to maintain 4H fixation below this price zone suggests a bearish limb towards 1.6650 ( previous bottom depicted on the chart ).
The material has been provided by InstaForex Company – www.instaforex.com
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