GBP/USD
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Wednesday 2013-01-30 09:31:50
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was testing the important support of a 4 years long upward trend line from Jan. 2009. It would be really interesting if it could break this level. On Daily and weekly time-frame is bearish. On the monthly time-frame is at an important point. If it breaks this trend line, it should flip the monthly time-frame to the bearish side. Well... it's a 4 years long trend so it shouldn't be able to break easily. It has bounced from 1.5673 (1.5692 is also the 61.8% Fib retracement from Jun 1st, 2012 low - Jan 2nd, 2013) to 1.5798 However, at the current situation GBP's weakness seems strong. Right now it's gonna need a strong economic data to hold this support so maybe now it is time to break? Just watch out for now
If you're bullish, you can trade against this line which comes around 1.5650 or against the 61.8% Fib level where it has bounced up. This is a nice risk reward ratio though if you're bullish.
If you're bearish, wait for it to break this trend line and wait for a pullback to enter short.
For me I wouldn't long at this level, 1.5783 at the time of writing. Over all situation, my bias is still to the downside but bottom line the market will tell. So I will mostly stick with the technical view still which it tells me that it doesn't seem to want to break this strong support just yet. I'm gonna wait for a confirmation of a break of this line to short it. Right now I'm staying sideline. I might scalp on the long side though if it falls to break this line again as long as it stays above it.
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Disclaimer: The information in this content represents my own opinions, knowledge, and experience that I’ve learnt and been through. So in sharing this information is to help you with ideas to include in your research before making a decision to either trading or stepping into this part of investment. Please read the full Risk Disclaimer in the term and condition section. |
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