05-12-2010, 22:11
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Member
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Join Date: Aug 2009
Location: York
Posts: 41
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Quote:
Originally Posted by AshFX
As you can see on the Daily chart of GBP/USD, it's been in a downwards channel for a few days now. Price has closed at 1.5787, which actually is not only the 50% fib level, but also the fourth point of the channel that I've drawn.
Ok, so this indicates strong resistance, so you'd be forgiven for thinking price is going to continue in this channel, i.e. down.
Except take a look at the Stochastic and AC. Stochs are powerfully climbing up, and are barely half way yet. AC has been green for a couple of bars. This tells me that if price does breach the upper trendline, then it's gonna breach it bad. If that happens, be prepared for a rise beyond the 61.8 retracement level.
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Thanks for that, lets see what it does :-)
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