GBPUSD might be forming a cycle top at 1.6692 level on daily chart, key support is now located at 1.6251, a breakdown below this level will confirm the cycle top, then another fall could be seen to test 1.5708 previous low support. However, a break above 1.6741 key resistance will indicate that the fall from 1.7042 has completed at 1.5708...
Let’s end the week with a daily view of the most heavily traded currency pair in the world. The EURUSD has bounced from the trendline that is drawn off of April and September lows (another potential channel line is the lower line, in blue). I do expect a break and sharp decline, as per the wave count, sentiment readings, and recent divergent/overbought...
GBPUSD continues moving sideways above 1.6251. The price action from 1.6251 is more likely consolidation of downtrend. Another fall towards 1.6000 is still possible after consolidation, and a breakdown below 1.6251 level will signal resumption of downtre...
Former supports are now resistance at 1.6484 and 1.6530. Strategy is to short on rallies to these levels. The decline from 1.7050 could be a series of 1st and 2nd waves, part of a leading diagonal, or a 3 wave correction. Price action since 1.6750 could also be in the mold of a triangle. There are many possible counts right now but most...
After a sharp drop from 1.6692, GBPUSD trades in a range between 1.6251 and 1.6450. Price action from 1.6251 is more likely consolidation of downtrend. Another fall is expected after consolidation and a break below 1.6251 will signal deeper decline towards 1.6000 zo...
Former supports are now resistance at 1.6484 and 1.6530. Strategy is to short on rallies to these levels. The decline from 1.7050 could be a series of 1st and 2nd waves, part of a leading diagonal, or a 3 wave correction. Price action since 1.6750 could also be in the mold of a triangle. There are many possible counts right now but most...
After a sharp drop from 1.6692, GBPUSD trades in a narrow range above 1.6251, suggesting a minor consolidation is underway. Range trading between 1.6251 and 1.6450 would more likely be seen later today. However, deeper decline is still possible after consolidation and a break below 1.6251 level will signal another fall towards 1.6000 zo...
Former supports are now resistance at 1.6391, 1.6484, and 1.6530. Strategy is to short on rallies to these levels. The decline from 1.7050 could be a series of 1st and 2nd waves, part of a leading diagonal, or a 3 wave correction. Price action since 1.6750 could also be in the mold of a triangle. There are many possible counts right now...
Being contained by 1.6741 critical resistance, GBPUSD pulled back sharply from 1.6692 last week and reaches 1.6251 so far, suggesting that the uptrend from 1.5708 has completed. Now the fall from 1.6692 is more likely resumption of longer term downtrend from 1.7042 (Aug 5 high), deeper decline is still possible in a couple of days and next...
GBPUSD broke above the falling trend line from 1.7042 to 1.6741 and is under pressure by 1.6741 resistance. Now the pair might be forming a cycle top at 1.6692 level on daily chart. Pullback to retest 1.5708 support would more likely be seen in next several days. However, a break above 1.6741 key resistance will indicate that the downward...
Yesterday, I wrote that “a rally above 1.6643 would complete 5 up from 1.6239 and shift risk lower towards 1.6500 (at least). 1.6715/50 is a resistance zone that I will sell into.” I later updated those levels to 1.6670-1.6750 at DailyFX Forex Stream. After trading to a high just below 1.6700 (the high was made close to the 61.8% extension...
After a small correction, GBPUSD’s uptrend extends further to as high as 1.6434 level. Another rise towards 1.6600 area is expected in a couple of days. Support level is now located at 1.6240, as long as this level holds, uptrend will contin...
The GBPUSD has returned to and exceeded the head and shoulders neckline that was broken in September. Resistance extends to a line extended from the August and September highs, which is at 1.6456 today (the line decreases 11 pips per day). The 61.8% of the decline from 1.6746 has held on a daily closing basis. Structurally, the decline...
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GBPUSD broke above 1.6125 key resistance and reached as high as 1.6399 level, suggesting that a cycle bottom has been formed at 1.5708 level on daily chart. Further rise to test the resistance of the falling trend line from 1.7042 to 1.6741 is expected next week, a clear break above the trend line resistance will take price to test 1.6741...
The GBPUSD has returned to and exceeded the head and shoulders neckline that was broken in September. Resistance extends to a line extended from the August and September highs, which is at 1.6467 today and 1.6456 Monday. I wrote yesterday that “longer term traders should look to position short against 1.6746 in the coming days.” This remains...
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The GBPUSD has returned to test the head and shoulders neckline that was broken in September. Resistance extends to a resistance line extended from the August and September highs, which is at 1.6478 today and decreases 22 pips per day. Longer term traders should look to position short against 1.6746 in the coming days. 1.6350 is potential...
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I wrote yesterday that “an objective remains 1.5300 (just above the 161.8% extension) but a corrective rally may delay a decline to that level. In any case, a bearish bias is warranted against the line extended from the September and October 8th highs.” The line has held thus far. An extension of weakness in a larger 3rd wave remains possible...
GBPUSD rebounded sharply from 1.5708, suggesting that a short term cycle bottom is being formed on 4-hour chart. Key resistance is located at the falling trend line from 1.6741 to 1.6120, a clear break above the trend line resistance will confirm the cycle bottom, then further rise could be seen to test 1.6125 resistance. Key support is now...
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I wrote yesterday that “the decline may have completed 5 waves down from 1.6746. An objective remains 1.5300 (just above the 161.8% extension) but a corrective rally may delay a decline to that level. In any case, a bearish bias is warranted against the line extended from the September and October 8th highs.” 5 waves are visible from 1.6746...
As expected, GBPUSD broke below 1.5770 previous low, suggesting that the downtrend from 1.6741 has resumed. Deeper decline is expected to 1.5500-1.5550 area in a couple of days. Initial resistance is at 1.5890, followed by the falling trend line on 4-hour chart extended from 1.6741 to 1.6120, as long as the trend line resistance holds, we...
The GBPUSD has traded below its September low but the decline may have completed 5 waves down from 1.6746. An objective remains 1.5300 (just above the 161.8% extension) but a corrective rally may delay a decline to that level. In any case, a bearish bias is warranted against the line extended from the September and October 8th highs. This...
