Forex: GBP/USD jumps to 1.5200

on Aug 1, 2013
Listen Thursday August 1st_: The pair’s descent from the 61.8 percent Fibo of 1.5750 to 1.4812 at 1.5390 expanded yesterday, with the price closing at 1.5172 for a 0.68 percent loss on the day. The low of the day yesterday was reached at 1.5123, which was also an 11-day low. From there the price rebounded to the day’s high of 1.5245, at which point the bulls encountered resistance which caused a general retreat and resulted in a third consecutive day’s fall.

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Today during the Asian session the pair fell to an intraday low so far of 1.5133, from which there’s since been retracement. Moments ago the price jumped sharply from 1.5160 to 1.5200 psychological level and is right now trading slightly down on that spike at 1.5185. If the price action should push through the 1.5200 level and reach yesterday’s high of 1.5245, a double bottom pattern would be formed on the 1h chart, and if the neckline should then be broken the pair would most likely rally further to test the 1.5350 resistance.

The MACD (9,12,1) divergence on the 4H chart has been pushing the price downwards since Monday of this week and has not yet been corrupted, suggesting that the price may drop more. This bearish outlook is also supported by the MA89 and MA200, which are moving above the price action on the 1H, 4H and daily scales.


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GBP Forex