Monday, June 2, 2014

GBP/USD intraday technical levels and trading recommendations for June 2, 2014




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The recent congestion zone between 1.6765 and 1.6815 was established 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.


The expressed bearish momentum enhances the bearish side of the market especially at retesting of recently broken support levels as taking place today.


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.













Performed by Mohamed Samy, Analytical expert
InstaForex Group © 2007-2014





GBP/USD intraday technical levels and trading recommendations for June 2, 2014

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