GBPUSD coiling for a move? The battle lines are set

Written January 14, 2010 at 9:26 AM EST by  

gregmike-00061

The GBPUSD seems to be coiling for a move. The topside resistance at the 100 day MA was broken on the weaker data, but EURUSD weakness led to selling pressure back down in the GBPUSD in sympathy. The price fell to support against the 100 and 200 bar MA on the 5 minute chart at the 1.6281/85 level.  Now the price is in between the two key levels – the 100 day MA and the 100 bar MA on the 5 minute chart. The lines in the sand are drawn.

Is it ready for a move?  Do not count it out. The market action seems to be trading actively – at least for now.  Watch the levels and look for a break of 1.6308 with a move above 1.6322 confirming the upside.  While a move below the 1.6280 level signalling pressure down to 1.6250 as the next target on the bearish side.  From there, further momentum moves should be made in the direction of the break. Be aware and let’s see if the market is indeed ready.

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