GBP/USD Intraday Technical Analysis and Trading Recommendations for February 9, 2012

Show full picture

The pair managed to make a bullish breakout of the consolidation range 1.5650 - 1.5740 within the bullish channel which opened the way for the pair to test 1.5775 that was broken too.

Break of resistance level 1.5775 opened the way directly towards 1.5870 which showed BEARISH price action in the first time.

Testing of the SUPPORT level 1.5740 showed BULLISH price action which led to break through 1.5775, the intraday resistance reaching 1.5870.

This week, we suggested a Short position which hit its SL with 4H closure above 1.5870. However, the pair came again to consolidate below 1.5870.

Now there's no obvious view for the pair as it made breakout above 1.5870 then failed to fixate above coming again below it showing the bearish domination again.

Also it's important to mention that the GBP/USD currency pair has a strong support area marked in blue on the chart at 1.5734-1.5750 which is the lower limit of both consolidation range & the newly formed bullish channel.

Based on the previous analysis

It's suggested to SELL at the resistance 1.5870 & BUY at 1.5734-1.5750 untill the pair decides its next destination outside the consolidation range 1.5735 - 1.5870.

GBP/USD: Intraday Technical Analysis for February 8, 2012.

Pivot Point: 1.5863.

Show full picture

GBP/USD:

• Resistance: 1.6123. (Sell below this level).
• Support: 1.5725. (Buy above this level).
  

Trading Recommendations:

According to the previous events, the price is still located between levels 1.61 and 1.572.

BUY-deals are recommended higher than the 1.5725 level with targets at levels 1.5820 and 1.59.
The descending movement will probably take place lower than the 1.6123 level with the first targets at levels 1.5965, 1.59 and 1.5835.

Overview:

It should be noted that the market revealed the signs of instability. The trend movement was controversial as it took place in a narrow sideways channel. Concerning the previous events, the price is still between the levels 1.61 and 1.572 so it is recommended to be cautious while making deals in this area. Therefore, it is necessary to wait till the sideways channel is passed through. Then, the market will probably indicate the signs of a bullish trend. In other words, BUY-deals are recommended higher than the 1.5725 level (Support 3: 1.5707) with its first target at level 1.582. From this point the pair is likely to begin the ascending movement to the point 1.5863 and further to the level to 1.59. However, if the pair is not manage to pass through the level 1.6123, the market will indicate a bearish opportunity below the strong resistance level 1.6123. In this regard, SELL-deals are recommended lower than the 1.61 level with the first target of 1.596. It is possible that the pair will turn to downward movement continuing the development of the bearish trend to the level 1.5835.

Intraday Technical levels (the 8^th of February, 2012):

R3:1.6052
R2:1.5978
R1:1.5937
PP:1.5863
S1:1.5822
S2:1.5748
S3:1.5707

Definition (s):

Range I – A long-term mean reversion strategy that looks to go against strong divergence from the pair’s average value. It will typically hold trades for an extended period of time and is one of the slower moving trading strategies.
Range II– Like Breakout 2, uses sentiment as a filter for its trades. It will use a simple oscillator range trading strategy but only take the trading signals if SSI is not at extremes. It is fairly short-term in nature and will tend to trade very little during times of strong trending moves. It is likewise one of the most volatility-sensitive trading systems and will tend to do poorly during times of sharp currency moves.

Observation (s):

Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.
Stop Loss should NEVER exceed your maximum exposure amounts.

InstaForex

EUR/USD Elliott wave count for February 7, 2012

Show full picture

Market Overview
Yesterday in early Asian session we could observe downward movement of the EUR/USD pair to the 1.3100 level (200EMA Support). European session continued in bullish mood and the price reached a low around 1.3025, in New York session we could observe slight upward movement and price filling opening gap at 1.3138.Today in Asian session this major tests again 200EMA where this pair can find big support and push back to opening price, we can expect a test around 1.3160 level before we see EURO/DOLLAR above 1.3200

Support and Resistance levels
(S3)1.2986 (S2)1.3029 (S1)1.3056 (PP)1.3100 (R1)1.3143 (R2)1.3170 (R3)1.3214

Important News
(EUR)French Trade Balance
(EUR)German Industrial Production m/m
(USD)Fed Chairman Bernanke Testifies
(USD)IBD/TIPP Economic Optimism
(USD)Consumer Credit m/m

EUR/USD Elliott Wave Analysis

Euro-Dollar Pair finishes 1 wave of bigger iii wave at 1.3140 level, wave 2 is over at 1.3089 and we are currently in 3 wave.Concerning our wave rules and assuming that wave 3 will finish at 161.8% of wave 1 we can project our potential targets level with Fibonacci extensions(1.3026-1.3140-1.3089) to 1.3205 level(100% of wave 1) and 1.3273(161.8% of wave 1)we can use end of wave 2 for our stop loss.

Trading Forecast
Proceeding from Elliott Wave Rules the trend is expected to begin the upward movement to go higher today. That is why LONG position at levels 1.3150 with Stop Loss at 1.3090, Take Profit 1 at 1.3205 and Take Profit 2 at 1.3273 are recommended

InstaForex

EUR/USD Intraday Technical Analysis and Trading Recommendations for February 6, 2012

Show full picture

On January 27, EUR/USD reached Fibonacci level 38.2% at 1.3232 showing bearish presence there.

Last Tuesday, EUR/USD currency pair managed to make a bearish breakout & close outside the narrow bullish channel marked in brown.

The EUR/USD currency pair tried two successive days to return within the broken channel with failure.

Show full picture

Retesting of the broken channel took place last week failing to fixate within the broken channel again & is moving within the newly formed bearish channel marked on the chart.

The view for the pair is still bearish as long as it's consolidating within the newly formed bearish channel and below resistance area 1.3215-1.3235

Sellers should take profits at 1.3105, 1.3060 then 1.3000 with possible further targets to be mentioned later.

Bearish reaction towards the lower limit of the broken bullish channel & the upper limit of the bearish channel opened the way to the lower limit of the newly formed bearish channel at 1.3030 initially which got hit short time ago.

Price action towards 1.3030-1.3000 should be watched in order to determine the next target for the pair, as its break will lead to 1.2950 then 1.2850.

Failure to break 1.3030-1.3000 pushes the pair towards 13100-1.3120 which will be good SELL entry.

 

InstaForex

GBP/JPY Elliott wave count and Fibonacci levels for February 3, 2012

GBP/JPY has just developed corrective wave B of medium term uptrend (colored magenta in the chart), and now the pair is moving within potential impulse wave C from 119.53.

The targets above are Fibonacci retracements of 121.98-119.53, 127.25-117.22, and expansions off 117.22-121.98-119.53, 119.53-120.92-120.16.

Resistances:

- 121.02-04 = confluence area of contracted objective point (COP) and .618 retracement
- 121.55 = objective point (OP)
- 122.24 = .50 ret
- 122.-4147 = confluence area of expanded objective point (XOP) and COP

However, if the downmove continues the immediate supports will be Fibnoacci retracements of 117.22-121.98, and expansions off 121.98-119.53-120.92.

Supports:

- 119.41 = COP
- 119.04 = .618 ret
- 118.47 = objective point (OP)

Show full picture
Overbought/Oversold

The bigger wave is now moving up, therefore it's preferable to try long positions when the Detrended Oscillator goes below the zero level (10-15 pips below the current prices) or into the oversold area (30-45 pips below the current prices).

Read more on how to trade with Fibonacci levels.

InstaForex

GBP/USD Intraday Technical Analysis & Trading Recommendations for February 2, 2012

Show full picture

After a break though the long-term bearish channel marked in blue, the pair is trending up inside the narrow bullish channel marked in brown.

The pair managed to make a bullish breakout of the consolidation range 1.5650 - 1.5740 which opened the way for the pair to test 1.5775 that was broken too.

Break of resistance level 1.5775 which took place yesterday opened the way directly towards 1.5870 which showed BEARISH price action.

Now the view for the GBP/USD pair is Bearish after failure of price to fixate above resistance level 1.5870.

Based on the previous analysis

The view for the pair is bearish but to minimize the position risk :

SELLING is suggested as soon as the pair retests the resistance level 1.5870 OR After 1H closure below 1.5815.

TP should be placed at 1.5820, 1.5775, 1.5740, 1.5690 then 1.5630 & SL should be placed above 1.5900.

InstaForex

GOLD Intraday Technical Analysis 2012-02-01

Show full picture 

Gold is moving in a medium-term trading range and approaching the intermediate resistance of this one at 1,748 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its trading range at 1,888.

RSI doesn't give clear signals but is approaching the overbuy zone suggesting a decline. 

Bollinger bands have greatly tightened during recent days showing a decline in volatility and the imminence of a violent movement.

According to previous events, the market indicates a bullish opportunity as soon as the gold will have broken its resistance at 1,748 with the 1st objective of 1,760, then 1,765. A break through 1,746 will change this scenario.

InstaForex