Forex Technical Update
June 25, 2010
- 4H and 1H: The GBP/USD pair has been strong in June. In fact it has been rallying since the middle of May, for a month now. This week, the pair showed some signs of finally topping.
- The 4H chart shows the rally stopped at 1.50. The daily chart below shows that the 1.50 level was near the 61.8% retracement of a downswing that started in April. A swing projection to 1.42 is suggested. A more aggressive swing projection brings the market to 1.37 area.
- This bearish outlook however is premature, and pending reversal action in the short-term.
- Looking at the 1H chart, we see that the market did make a double top the second half of this week. the base was at 1.4930, which was broken. After declining to 1.4860, the market rallied. This can be a pullback.
- At the moment the pullback is at 61.8% retracement level and seems to be stalling. A decline from here should see a swing towards 1.4680 (50% retracement level). It may go to 1.46 the 61.8% retracement.
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.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
