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The pair has established a recent support zone between 1.6765 and 1.6815 during February and March. These levels correspond to the previous tops in a successful Double Top pattern.
The depicted BLUE uptrend line remained intact since it was established in November 2013. However, this time the bulls failed to achieve a higher high above the recent one around 1.6995. Moreover, the bears broke-down this trend line challenging the recent bottom around 1.6730 which was established in mid March.
On the 4H chart, strong bearish rejection was expressed off 1.6920 leading to bearish breakdown of the depicted bullish channel as well as successive previous support levels now acting as resistance.
Moreover, four-Hour closure below 1.6825- 1.6800 gathered enough bearish momentum to push towards the prominent support level around 1.6750.
The long-term perspective remains bearish aiming to form another bearish limb that would extend below 1.6730 ( the most recent bottom ) as long as the bears keep defending this resistance level.
This expected bearish impulse is probably targeting at 1.6650 ( previous ascending top ).
Around 1.6650, price action should be watched then for a possible bullish corrective movement.
Mohamed Samy is taking part in the “Analyst of the Year” award organized by MT5.com portal. If you like his article, please vote for him.
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Performed by Mohamed Samy, Analytical expert InstaForex Group © 2007-2014 |
GBP/USD intraday technical levels and trading recommendations for May 30, 2014
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