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GBP/USD – What To Expect Part 2

September 13, 2013 10:45 pm GMT+0  in Chart Alert

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GBP/USD moved exactly as we had predicted in our previous chart alert titled GBP/USD – What to Expect?. In fact it would be better to see that post first.

The pair moved up to 1.5885 which was just 8 pips below the lower range of the resistance zone mentioned in the last and above mentioned update.

This move brought GBP/USD almost at the trend line which was previously the support trend line but later had turned into a resistance trend line.

GBP/USD weekly chart for past 4 years

GBP/USD at the trend line resistance

Let’s see another weekly chart with retracement levels:

GBP/USD broke over the retracement resistance level

As clear by the above chart that a break over 1.5789 had represented a break over 61.8% retracement level of the move from 1.6381 to 1.4831. The pair had failed well ahead this level twice. This break surely indicates the bullish sentiments. However a caution is required considering the trend line resistance as indicated in the first chart.

What to Expect?

Resistance in the 1.5893 to 1.5940 zone is still expected. A break above this should target 1.6000 psychological zone but again a resistance will be expected in 1.6000 to 1.6015 zone.

Please share your opinions in the comment box below to discuss about the GBP/USD price action more.

Author Info

Avatar of Himanshu

Himanshu, by qualification a mechanical engineer with diversified experience of working in Europe and Asia Pacific, has been trading in Forex market for close to a decade. Himanshu also runs one of the fastest growing Forex portal ForexAbode.com which provides free Forex trading analysis, forecast & strategies, free trading tools, education, Forex Blogs and Forex Forum and contributes the analysis to financial and Forex websites like SeekingAlpha.com, MarketOracle.co.uk, ForexStreet.net, CountingPips.com, International Business Times and some more. Contact details: You may please leave your suggestions, comments or complaints using the comment form or write to us using the Contact Us page. You may also connect the author on Google at +Himanshu Jain

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3 responses to GBP/USD – What To Expect Part 2

  1. U r great man..thanks for the sharing. I manage to take over again my money that lost for past few years.. Hope can be like u man, shared for everyone benefit..thanks again.

  2. You are welcome Volkan and hope that you could also share your experiences with this community.

  3. Thanks very much for sharing this. It is extremely helpful for setting up a pending order.

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