GBPUSD consolidating. Awaits a directional move.
Written November 12, 2009 at 9:38 AM EST by Greg Michalowski
The GBPUSD has consolidated the decline from yesterday and is setting up a triangle formation for the pair. The topside has the 200 bar MA on the 5 minute chart and the trendline at the 1.6571/73 area. On the downside, the 1.6528 level is the support. A break of either level should lead to a momentum move in that direction.
Looking at the hourly chart, the market has moved below the 200 hour MA and seems to want to move away from it to the downside. A move below the low for the day at 1.6517 should lead to further downside momentum with a target at the 1.6408 level. This is the 38.2% retracement of the move up from the Oct 13th low (not shown in the chart above) to the Nov 6th high.
Categories: Forex Trading |
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