March 25, 2011 – GBP/USD Tests 1.6060 Pivot; Key Support Zone at 1.5975-1.60
Simple Moving Average(SMA) 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
GBP/USD’s Bearish Impulse Wave Suggests Further Correction (3/24)
GBP/USD
Short Term to Medium Term
- The GBP/USD can be seen in the 1H chart developing a bullish divergence as the market attempts to satisfy a negative reversal target. (swing projection to 1.6050.)
- The RSI in the 4H chart is below 40, but has not tagged 30 to show bearish momentum. Below 30, the RSI reflects medium term ranging action. If not, we have more bullish bias, though we still are in a choppy market.
- Below 1.6060/1.6050, we would test the zone of support between 1.5975 and 1.60. If the market is ranging/bullish bias, we should see support at this support zone.
- On the upside, we will re-open the bullish scenario if the market can rally back above the 1.62 pivot, after which we should be heading at least to retest the 1.64 high.
- Below 1.5975, we can slide towards the support zone between 1.58 and 1.5750, previous 200 SMA and previous support pivot. There we can expect a bounce, maybe as a pullback towards the 1.5975-1.60 zone.
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Fan Yang CMT
Chief Technical Strategist
FXTimes
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 analysis.
he GBP/CHF might finally have topped off after a sharp rally from 1.44 to 1.54 (a 1000-pip swing).
- There is a cluster of 61.8% fibonacci retracement level, psychological resistance at 1.54, as well as a previous support for a double top that was broken (after which, the slide from 1.60 extended to 1.44.
- This volatile pair also has the RSI now failing to sustain a break above 60 – all these are signs of topping.
- The 4H chart also shows the topping action in more detail, and lays out some fibonacci retracement levels as targets for conservative bearish scenarios.
