GBP/USD – Some Observations – Forex Chart ALert
June 18, 2013 11:46 pm GMT+0 in Chart Alert
As we had indicated on June 12th that the upward gains may find resistance near or below 1.5785, the currency pair fell from 1.5751. Tho check on this aspect you may please check this alert for GBP/USD.
The strong fall found support at 1.5665. Interestingly this support came just above the 200-day moving average. Please check the following daily chart of GBPUSD for the same. The green line is representing the 200-day moving average.
GBP/USD and 200 day moving average
As mentioned in the previous chart alert that considering the strong resistance below the previous support trend line turned resistance, we can not ignore the possibilities for a reversal. Especially as the resistance represented the combined resistance of the trend line as well as the 61.8% retracement level of the move from 1,4831 to 1.6381. Not only this but the resistance also was well below the previous support of mid-November 2012 i.e. 1.5828. This fact indicates that this previous support may also act as resistance now. Hence we have 3 resistances ahead against any upward moves. Please check the following chart to see the mentioned support of November 2012.
GBPUSD and the previous support
What is ahead
As we mentioned above that considering all the above points we can not ignore deeper declines or even a reversal but the following support levels are critical obstacles against this. A break of this will be the first sign towards deeper moves:
1) 200-day moving average support at 1.5551. This support level also brings in the power of minor psychological support of 1.5500 ranges.
2) The support of the low of the sideways move during June 7th to June 10th. This is at 1.5488.
3) 38.2% retracement of the recent upward gains from 1.5008 to 1.5751.
4) 55-day EMA: The current 55-day EMA is at 1.5312 but with any downward move it will go down and we can consider it in the range of 1.5390 to 1.5400.
Please check the following chart for the above points.
GBPUSD and immediate support levels
38.2% retracement support
An eye on these immediate supports need to be there as most of these are quite close to each other. Any decisive breaks may bring deeper declines.
You may also like to check the weekly outlook and predictions for GBP/USD.