GBP/USD Near The Support Level Of 61.8% Retracement
February 3, 2013 in Chart Alert
After breaking below the key support of 200-day moving average, GBP/USD also had broken below the 50% retracement support of the upward gains from 1.5269 of June 1st 2012 to the recent 1.6381. Please check this GBP/USD chart alert of last weekend for the details.
The subsequent downward move made an effort to break below even the 61.8% retracement of the above mentioned move. The current price action is just near that level. Any decisive break should bring further decline.
Important price levels and chart observations:
1) The next retracement level is near 1.5530 i.e. above the psychological level of 1.5530.
2) The approximate double top pattern which has emerged with the break below the neckline will complete if a move towards 1.5350 takes place. Butt as no chart pattern can be perfect we would consider a range of 1.5350 to 1.5420.
3) The price action is still within the mid term converging channel of the price action which is in place since August 2009. That channel indicates a support near 1.5600. Any decisive break below 1.5600/1.5550 will indicate the break of this support.
GBP/USD price action channel – Weekly chart