Forex Technical Update
July 28, 2010
- Daily: In last Friday’s Weekly Technical Update, it was noted that the GBP/USD developed a positive reversal (when the RSI low is lower or equal, but the price low is higher). The swing projection to 1.5610 was projected. The market reached 1.5637 already.
- I mentioned that this pair now enters a zone of resistance above 1.56. You can see in the daily that this is the zone between 50 and 61.8% retracement.
- 1H: The GBP/USD in the 1H chart also shows a rally following a positive reversal. The projection to 1.5625 was reached. This came after a bearish divergence was formed.
- This suggests that the momentum has slowed, but the bearish attempts are in the near-term, and not strong enough to reverse the trend.
- Now we are pushing into resistance again. Some traders find this to be a scalping opportunity, but for the intermediate term, the rally is still intact, and there are no signs of reversal.
- However, being that the market is testing resistance, the resistance zone above 1.56 should be monitored for topping action.
Fan Yang
Currency Analyst
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
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