the usd is making the upper rise against thee British pound but present the pound is down with 0.26% of loss against the dollar bu am thinking thing mind change but with time running out on the day,i think the market might end with the dollar making another gain today.
the usd dollar is gaining more ground against the GBP,market was at 1.6151 quote when i enter trade and i was hoping to take profit when market reached 1.6160,i was able to make some good moves taking profit at 1.6160,the usd continue to make more moves till it reach 1.6164 to make a +0.28% profit.well the market is till on but am out.
the usd is having it little way against the gbd but i dont think the current percentage of +0.06% rise of the usd against the gbd is gonna last long the current 1.5802 on market isn't gonna last as the news coming for the euro might change the destiny of the dollar before the market runs out.
GBP/USD dropped further to as low as 1.5636 last week and met mentioned target of 61.8% retracement of 1.5234 to 1.6300 at 1.5641. Initial bias remains on the downside this week and sustained trading below 1.5641 will pave the way to retest 1.5234 low. On the upside, above 1.5726 minor resistance will indicate short term bottoming. In such case, stronger rebound could be seen back to 1.5847 resistance and above before staging another decline.
In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161, no change in this view. Such consolidation could be in form of a triangle that's completed at 1.6300 but this is far from being certain. We'll stay neutral until a break of 1.5234 support, which indicates down trend resumption. Before that, more choppy range trading could be seen between 1.5234/6746.
In the longer term picture, the corrective nature of the multi-decade advance from 1.0463 (85 low) to 2.1161 as well as the impulsive nature of the fall from there suggests that GBP/USD is now in an early stage of a long term down trend. Another low below 1.3503 is anticipated after consolidation from there is confirmed to be completed.
The spot rate is currently testing the upper limit of its long-term bearish channel at 1.6150 suggesting a decline. However, a break of these levels will initiate a violent bullish channel.
Technical indicators provide sell signals and, until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
The spot rate is currently testing the upper limit of its channel, so we recommend 2 scenarios: the first one is the hypothesis of a decline, then we recommend to sell at the level of 1.6150 with the 1st objective at 1.6090 and then at 1.6070. A break through 1.6170 will invalidate this scenario. The second scenario is a break of its resistance, then we recommend a “buy stop”, which means to buy at the spot rate as soon as it has broken through its resistance of 1.6150 with the 1st objective at 1.6210 and then at 1.6230. A break through 1.6130 will invalidate this scenario.
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