GBP/USD Trading

AshFX · #41 (**permalink**) 14-04-2010, 15:59

Looking towards the short term, we can see a clear channel forming on the hourly chart. Some reasons for a quick short bias on Cable:

Take a look at the attached pic.

1. Channel is heading down. Not particularly steep, but headed down nevertheless.

2. AC has turned red. A possible sign of some more bears.

3. Stochastics have been hovering near the overbought area for a few hours now.

A 1.5400 area could well be established within the next few hours. It really depends on how strong this channel is.

AshFX · #42 (**permalink**) 16-04-2010, 17:32

We have a strong downwards channel that has been formed over the course of the past two days especially. I was bullish on Cable up to a point, and that point has come...

Take a look at the daily chart attached, stochastics are in overbought mode, and are now beginning to point down, even if very slightly. In addition, AC has turned red. Could be a sign for the next few days.

However, longer term we have a different story. Look at the weekly chart attached. We have been headed up for the past couple of weeks. There was a retracement to the 23.6 level, before bouncing back up.

So overall what could well happen next week is, we'd have some bearish attributed being executed, albeit this wouldn't be for too long. I do not think it will touch the 38.2 level, though it should cross the 23.6. From then, it remains to be seen whether Cable will push up further next week or the following (meaning past 1.5530).

And concerning next week, lets just hope we don't get another huge gap as we got this week!

adria · #43 (**permalink**) 22-06-2010, 15:13

GBP/USD drew some support from 4 hours 55 EMA and recovered in early US session. Intraday bias is turned neutral again. As noted before, even in case of another rise, we'd expect strong resistance at 61.8% retracement of 1.5521 to 1.4230 at 1.5028 to conclude the recovery from 1.4230 finally.

jackie101 · #44 (**permalink**) 25-07-2010, 09:57

The Pound rose against the Dollar after a report showed U.K. June retail sales rose more than economists predicted, damping concern that the economy might slip back into a recession. Retail Sales came out at 0.7% vs. 0.5% forecast. The main support of the GBP/USD on the one hour chart is 1.5230, if the price trades below this level the momentum will be bearish, the RSI is above 50 which means a positive trend, the next resistance on the daily chart is 1.5340 .Overall, GBP/USD traded with a low of 1.5149 and with a high of 1.5296. Today, Prelim GDP is expected at 0.6% vs. 0.3% prior.

Jptrader · #45 (**permalink**) 03-09-2010, 05:12

Trading in a channel. I am looking for a short once it reaches the top of the channel between 1.5470/90 with stop 1.5510 and target yesterday's low/support at 1.5350. Respecting a Risk/Ratio of 1-3.
But to trade with caution ahead of tomorrow's Non-Farm Employment Change
GBP02092014H.jpg

jackie101 · #46 (**permalink**) 11-09-2010, 06:10

According to Ufx bank, the Pound trimmed previous day\'s gains and weakened against the dollar after it failed to breach the resistance area of 1.5480. The Trade Balance came out at -8.7B worse than expected -7.5B. The Interest Rate Decision came out unchanged at 0.5% as expected. Holding above the support level of 1.5380 keeps the momentum positive for the pair. Overall, GBP/USD traded with a low of 1.5374 and with a high of 1.5476.

AshFX · #47 (**permalink**) 05-12-2010, 19:17

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.

Egwig · #48 (**permalink**) 05-12-2010, 21:30

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.

Thanks for that, Ash

It's been a while.

Welcome home.

Egwig

micha3l · #49 (**permalink**) 05-12-2010, 21:53

Thank you for that!

andybob0001 · #50 (**permalink**) 05-12-2010, 23:11

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.

Thanks for that, lets see what it does :-)