GBP/USD Intraday Technical Analysis and Trading Recommendations for February 29, 2012

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GBP/USD Survey according to the Linear Regression Channels over the past two weeks:

- After failure to trade below 1.5800 yesterday, GBP/USD pair is now testing 1.5925 which is corresponding to the upper limit of the bullish blue channel.

- GBP/USD respected the upper limit of both channels depicted on the chart which showed bearish presence pushing the pair down to 1.5802. However, Price came back quickly to break this channel with quite strong bullish 4H candlestick.

- GBP/USD is now testing the high for this month at 1.5927. Moreover, it has a strong resistance area at 1.5940-1.5960.

- Broken limit of the violet channel at 1.5850 is now acting as support level for the pair.

4H closure above 1.5960 allows the pair to reach 1.6050.

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The 1H chart of GBP/USD shows that the pair has an important support level at 1.5900 which is the lower limit of the violet bullish channel, the intermediate line of the Yellow one and the upper limit of the transverse blue channel.

This price level 1.5900 is significant as Bullish Price Action towards it pushes the pair to the upside reaching 1.5950 initially.

Break of this level will allow the pair to reach 1.5850 which is corresponding to the lower limit of the Yellow bullish channel which constitutes an important support for the pair today.

Today we should be cautious as channels are quite wide indicating a possible strong movement whatever the direction is.

 

GBP/USD Intraday Technical Analysis and Trading Recommendations for February 28, 2012

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GBP/USD Survey according to the Linear Regression Channels over the past two weeks:

-Yesterday, GBP/USD pair failed to reach its resistance level corresponding to this month high 1.5927 recording a daily high at 1.5903.

-GBP/USD respected the upper limit of both channels depicted on the chart which showed bearish presence pushing the pair down to 1.5813.

-The nearest support levels are located below the current prices around 1.5750 and 1.5650 levels.

- The nearest resistance level is at 1.5860 which is the upper limit of the bearish violet channel.

It is necessary to mention that last week the GBP/USD pair moved within a strong bullish trend and reached these levels despite the strong decline. Therefore, the reverse movement is likely to take place regardless of whether it is short-term or not.

The pair is expected to continue downside movement towards 1.5750 which should be watched for Price Action.

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Yesterday, the GBP/USD pair moved within a narrow bearish channel marked on the chart.

The pair is showing bullish presence at testing of the lower limit of the Yellow channel.

Break of the narrow violet bearish channel 1.5840 will allow the pair to reach 1.5860 (the intermediate line of the blue channel ) which is expected to bring bearish presence again to the market.

The pair should break the lower limit of the yellow channel at 1.5805 in order to resume its downside movement towards 1.5750 and 1.5650.

GBP/USD Intraday Technical Analysis and Trading Recommendations for February 27, 2012

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GBP/USD Survey according to the Linear Regression Channels over the past two weeks:

-GBP/USD is now testing the upper limit of both channels depicted on the chart.

-presently the GBP/USD pair is approaching the resistance level corresponding to the month high 1.5927 recorded on February 8.

- The last candlestick on 4H timeframe is “inverted hammer” and is considered as bearish.

It is necessary to mention that last week the GBP/USD pair moved within a strong bullish trend and reached these levels despite the strong decline. Therefore, the reverse movement is likely to take place regardless of whether it is short-term or not.
The nearest support levels are located below the current prices near the 1.5840, 1.5750 and 1.5650 levels.




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Last week the GBP/USD pair showed the strong bearish reaction towards the upper limit of the Yellow channel that took place during the last hours of the trading day.

Also the pair has an Intraday support at 1.5805-1.5785 which corresponds to the intermediate line of the Yellow channel and to the lower limit of both Violet & Blue channels.
Bullish Reaction towards this area confirms the tendency and indicates the opportunity of bullish movement.
The breakdown of this area will enable a decline to the lower limit of the Yellow channel located near the point 1.5750.
Based on the previous analysis

The market indicates a bearish tendency at the current price 1.5888 with TP at 1.5835, 1.5805 levels with the next target seen at the 1.5800 level.

In case the support is passed through, the further decline to the point 1.5750 is likely to take place. However, the breakdown of the 1.5927 level will cancel the bearish scenario.

Bullish movement towards 1.5805-1.5785 provides the signal for long positions with the breakdown of at 1.5780 level.

GBP/USD Intraday Technical Analysis and Trading Recommendations for February 24, 2012

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This week we mentioned that GBP/USD is bearish for the following reasons:

- The GBP/USD currency pair found resistance around 1.5875 which corresponds to the upper limit of both drawn channels.

- The pair has successfully broken the intermediate line of the bullish channel at 1.5800.

- The pair is probably forming a Head and Shoulders reversal pattern which is marked on the chart.

After successful retesting of the intermediate line of the bullish violet channel at 1.5800, GBP/USD currency pair witnessed strong decline recording a daily low at 1.5644 thus breaking the lower limit of the bullish channel around 1.5720.

Break of this channel opens the way for the pair to visit the lower limit of the bearish channel around 1.5585 later, but as expected reversal took place at the daily support at 1.5650 to retest broken supports during the bearish decline of Wednesday.

The pair is now testing the backside of the broken bullish channel which didn't show strong bearish reaction till now.

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The pair is now testing the upper limit of the wide bearish blue channel after stepping outside the bearish yellow channel with no obvious bullish strength there.

The pair has a strong resistance level at 1.5760 which the pair didn't succeed to reach yesterday.

It's expected to break the lower limit of the bullish violet channel opening the way to resume its downside movement towards 1.5650 then 1.5585.

Breaks of price level 1.5815 will invalidate this scenario.

 

AUD/USD Elliott wave count and Fibonacci levels for February 23, 2012

AUD/USD is now developing corrective wave B of long term uptrend (colored light green in the chart) from 1.0844. Within this wave there are subwaves A, B, and C (colored royal blue in the chart) with subwave C still developing from 1.0815. This subwave was confirmed when the price broke below 1.0628 (top of wave A). However there are also smaller waves within the latter wave - they are A, and B (colored red) that is now developing from 1.0597.

Now the targets of the downmove are Fibonacci retracements of 1.0145-1.0844, and expansions off 1.0844-1.0628-1.0815.

Supports:

- 1.0599 = objective point (OP)
- 1.0577 = .382 retracement
- 1.0495 = .50 ret

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0815-1.0597.

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Overbought/Oversold

The larger wave is now moving down, so it's prefereable to go short when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (20-35 pips above the current prices), watch for possibilities to go short at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.

USD/CAD Elliott Wave Count for February 22, 2012

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Market Overview
The USD/CAD pair wave trading in upward move yesterday, in European session we could observe price broker 50,100 and 200 EMA resistance and reached a new high at 0.9975 level,in the last few hours of a New York session price pullback to 50EMA.Today price continued to fallow bullish mood and price reached a new high in Asian session at 0.9988.Price did not manage to hold this level and price pushed back to 0.9955 level.In European session after we saw bad news from Europe this major pair once again push higher. We are expecting to see downward movement today to 0.9900 level,We need to take a look at USA Existing Home Sales today that could affect this pair.

Support and Resistance levels
(S3) 0.9904 (S2) 0.9924 (S1) 0.9936 (PP) 0.9956 (R1) 0.9976 (R2) 0.9988(R3) 1.0008

USD/CAD Elliott Wave Analysis

The USD/CAD pair is finishing (2) wave of bigger (v) wave.We are expecting to see end of (2) wave around 0.9995 and 1.0019 where we can enter short for (3) wave. According to our wave rules and taking into consideration that wave (3) will finish around 161.8% of (1) wave,we can project our targets for today with Fibonacci extension(1.0050-0.9906-0.9995) to first take profit level at 0.9863(100% of wave (1)) and second take profit at 0.9774(161.8% of wave (1)).

Trading Forecast
Proceeding from Elliott Wave Rules the trend is expected to begin the downward movement to go lower today. That is why Short position at levels 0.9995 with Stop Loss at 1.0050, Take Profit 1 at 0.9863 and Take Profit 2 at 0.9774 are recommended

 

InstaForex

EUR/USD Intraday Technical Levels for February 20, 2012

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TODAY  TECHNICAL  LEVEL :

Breakout BUY Level : 1.3282.

Strong Resistance : 1.3274.

Original Resistance : 1.3262.

Inner Sell Area : 1.3249.

Target Inner Area : 1.3218.

Inner Buy Area : 1.3186.

Original Support : 1.3174.

Strong Support : 1.3161.

Breakout SELL Level : 1.3153.

DESCRIPTION :

Today EUR/USD has support and resistance at 1.3174 and 1.3262 and is accompanied by strong support at 1.3161 and by 1.3274 as strong resistance.

If EUR/USD breaks out and closes below a 1.3153-level today, then this will indicate considerable bearish strength, while if EUR/USD manages to break out and close above a 1.3282-level, then this will denote high bullish strength. Alternatively, you can trade in a way to open a BUY position at the level of 1.3186, and at 1.3249– a SELL position, in this case both targets should be located at the level of 1.3218.