Bears are facing the 1.5271 level on GBPUSD
Last Updated on Monday, 28 November 2011 10:35 Written by FxTT Analysis Department Monday, 28 November 2011 10:28
GBPUSD – Weekly Technical Analysis
TECHNICAL ANALYSIS REVIEW
GBPUSD had been moving down since the major swing high at 1.6746 (the high of 28 April 2011) going all the way down reach the major swing low at 1.5271 (the low of 6 October 2011). Then GBPUSD had bounced back up until 1.6111 (31 October 2011) near 1.6101, it’s the 61.8% Fibonacci retracement level for the down move from 1.6618 (19 August 2011) up to 1.5271, then the bears had win the battle once more and succeed to push GBPUSD once more down and they will be facing the strong support level at 1.5271 once more.
Previous Month
|
Open |
High |
Low |
Close |
Range |
|
1.5560 |
1.6165 |
1.5271 |
1.6076 |
894 |
Previous Week
|
Open |
High |
Low |
Close |
Range |
|
1.5790 |
1.5797 |
1.5423 |
1.5450 |
374 |
GBPUSD – DAILY CHART
Bears are facing the strong 1.5271 support level
TECHNICAL ANALYSIS OUTLOOK
By taking a closer look at the latest up and down waves we found that GBPUSD went from 1.5271 to 1.6111 (wave distance was 840 pips) in 22 trading days with an average of 38 pips per day (840/22 = 38), then it went back down from 1.6111 to 1.5422 (wave distance was 689 pips) in 23 days with an average of 29 pips per day (689/23 = 29).
Based on that it is clear that bulls is stronger than bears and shall be able to push the sterling pound against US dollar back up. Moreover, the 14 days stochastic indicator is extremely oversold at a very low level (4.877). Any daily close above 1.5518 (November 25th, 2011 high) should be a very strong buy signal with a stop loss at 1.5270 targeting 1.5566, 1.5691, and 1.5888. On the other hands, any daily close below 1.5271 should call for a new yearly low.
| Long-term Market Condition: | Corrective phase |
| Long-term Market Direction : | Up |
| Support 1: | 1.5430 | Resistance 1: | 1.5518 |
| Support 2: | 1.5340 | Resistance 2: | 1.5566 |
| Support 3: | 1.5271 | Resistance 3: | 1.5691 |
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