Technical analysis
Mohamed Samy
Here on the GBP/USD daily chart, we see a major swing down from 1.6616 down to 1.5271.
Since the pair has formed a typical bullish hammer at October 6, it has been moving up till it reached 61.8% fibonacci level.
It's important to note 1.6110 is a major key-level for the pair as it's 61.8% Fibonacci level & a distinct previous low.
We can obviously see the three successful testing for this level marked on the chart including Monday's bearish engulfing daily candlestick.
Now the pair has two important support levels on its way which need to be broken to make sure that the bullish retracement is over.
Those two levels are 1.5945 (50% Fibonacci level) & 1.5860 (lower limit of the current congestion zone & the neck-line for a possible double-top reversal pattern) which was broken with Yesterday's daily candlestick.
This double top was confirmed when the pair managed to stabilize below 1.5860 targetting 1.5645 & will be considered a failure if the pair manages to stabilize above 1.6150.
Retesting of the neck-line will be a good SHORT entry too if happens before hiting the final target for the double top pattern.
http://instaforex.com/forex_analysis/43955/?x=OUE
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