Technical Analysis: #GBPUSD 05/12/14 #GBP November Monthly bar closed at 1.5648; the 22/11/14 Weekly bar closed at 1.5651. Yesterdays bar closed lower at 1.5672; price is still trading between 1.5600 and 1.5700. GBPs downtrend remains intact, however #Sterling may be forming a Double Bottom at 1.5600 with 1.5630 providing an additional layer of potential soft support. We also have clear #Stochastic bullish divergence. For this reversal pattern to be confirmed we would need to see a close above 1.5825; an early indication of a potential shift towards bullish sentiment would require a close above the recent minor swing high at 1.5763. This show of a change in sentiment, even if only temporary could induce a further move towards 1.6000 - 1.6200. Although a minor bullish correction at this stage would be a logical outcome, as both the Monthly and Weekly charts are overextended from their 10 #EMAs, if support and resistance are too strong the market may go into a period of consolidation. Alternatively a new low close below 1.5600 might propel price towards a potential Monthly support level at 1.5500. Beyond this we have possible support at a major .786 Fib. level and 1.5300. Trade Smarter with CWM FX. Visit us at cwmfx and start trading #Forex today.
Posted on: Fri, 05 Dec 2014 16:30:00 +0000
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