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Wednesday, March 7, 2012

GBP/USD Intraday Technical Analysis and Trading Recommendations for March 7, 2012


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On the 4H chart there is the "Head & Shoulders" reversal pattern which was confirmed yesterday after the obvious strong break of the neck-line at 1.5790
As expected, this pattern gave us low risk SELL-deals at 1.5870 corresponding to the right shoulder which was tested twice this week.
The expected targets for the confirmed pattern are located at 1.5720, 1.5662, 1.5630.
Also yesterday we witnessed break of the lower limit of the mid-term bullish channel with obvious bearish price action which may give another SELL-deals on retesting around 1.5790 with a potential target at 1.5480.
Some profits should be taken at the expected targets and stop loss should be lowered to 1.5880 as break of this resistance invalidates the current bearish scenario.

 

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