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Previously, the recent prominent 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 123 reversal pattern as depicted on the chart.
Once before, the GBP/USD pair showed bullish recovery after testing of 1.6730. Thus, we mentioned it may constitute a DEMAND level on intraday basis. However, lack of bullish presence is witnessed during this bearish visit especially after the bears managed to achieve a daily closure at 1.6709 which is quite bearish.
If the bears manage to break-down the currently tested DEMAND level around 1.6700, the pair will have obvious targets around 1.6670 initially then 1.6600 to be followed.
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 which has already been hit Yesterday.
Price zone of 1.6750-1.6730 corresponded to lower limit of the ongoing channel. However, it has been broken down previously this week. This enhances the bearish momentum on the weekly-basis.
4H fixation below this price zone suggests a bearish limb towards 1.6650 immediately which is expected to be visited shortly after.
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Performed by Michael Becker, Analytical expert InstaForex Group © 2007-2014 |
Intraday technical levels and trading recommendations on GBP/USD for May 29, 2014
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