GBP/USD: Intraday Technical Analysis for July 6, 2012

Weekly Pivot Point: 1.5634.

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Sideways Trend: Prices are moving within a narrow range between 1.5580 and 1.5480.
GBP/USD "Pound-Dollar":
•Resistance: 1.5583. (Sell below this level).
•Support: 1.5477. (Buy above this level).

Trading Recommendations:

According to the previous events, the price is still between the levels 1.5580 and 1.5480.

• The descending movement will probably take place lower than the 1.5580 level with the first targets at levels 1.553 and 1.5483.
• BUY deals are recommended higher than the 1.5480 level with targets at levels 1.5525 and 1.5577.

Overview:

It should be noticed that the market revealed the signs of instability. The trend movement was controversial as it took place in a narrow sideways channel. Due to the previous events, the price is still between the levels of 1.5580 and 1.5480, so it is recommended to be careful 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 1.5480 level with its first target at the level of 1.5525. From this point, the pair is likely to begin an ascending movement to the point of 1.5550 and further to the level of 1.5580. However, if the pair fails to pass through the level of 1.5583, the market will indicate a bearish opportunity below the strong resistance level of 1.5583. In this regard, SELL deals are recommended lower than the 1.5583 level with the first target at 1.5533. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.5480.

GBP/JPY Around 123.50 Today - Analysis for July 5, 2012

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GBP/JPY Elliott Wave
Yesterday the GBP/JPY pair was trading in a downward move developing impulsive wave 3 (coloured blue). During the early European session we could observe a descending movement towards the 124.65 level. Therefore, during the New York session we could observe continuation of the bearish mood with the price reaching new daily low at 124.18 level. Today this exotic pair is trading around 124.00 level and I am expecting to see the price around 123.50. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci Extensions (125.42-124.24-125.39) with Take Profit 1 at 123.54 (161.8% of wave 1) and Take Profit 2 at 123.08(200% of wave 1). Resistance point at 124.20 can be used as a Stop Loss point.
Support and Resistance Levels
(S3) 123.64 (S2) 124.04 (S1) 124.28 (PP) 124.68 (R1) 125.08 (R2) 125.32 (R3) 125.72
Trading Forecast
Proceeding from Elliott Wave Rules this week, the trend is expected to begin the downward movement. That is why short positions at level 124.00 with Stop Loss at 124.20, Take Profit 1 at 123.54 and Take Profit 2 at 123.08 are recommended.

GBP/USD Intraday Technical Analysis

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The spot rate is currently testing the upper limit of its medium term bearish channel at 1.5720 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide sell-signals supporting the assumption of a decline in a short term. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.5720 with the 1st objective at 1.5780 and then at 1.5800. A break through 1.5700 will invalidate this scenario.

GBP/USD Weekly Wave Analysis

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GBP/USD Elliott Wave
The GBP/USD pair was trading in an upward move last week developing waves 1 and 2 (coloured green). During the Asian and the early European sessions we could observe descending movement toward the 1.5640 level where this major pair found support and price started pushing higher. Therefore, during the New York session we could observe a strong bullish mood in this pair and price reached above 1.5720 level. Today the GBP/USD pair is trading in a sideways move and we are expecting to see price above 1.5800 level. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci Extensions (1.5265-1.5777-1.5483 with Take Profit 1 at 1.5993 (100% of wave 1) and Take Profit 2 at 1.6408 (161.8% of wave 1). Invalidation point at 1.5484 can be used as a Stop Loss point. Also it is necessary to monitor the U.S Factory Orders m/m and Total Vehicle Sales data that can change the rate of the pair.
Support and Resistance Levels
(S3) 1.5605 (S2) 1.5636 (S1) 1.5654 (PP) 1.5685 (R1) 1.5716 (R2) 1.5734 (R3) 1.5765
Trading Forecast
Proceeding from Elliott Wave Rules this week, the trend is expected to begin the upward movement. That is why long positions at level 1.5777 with Stop Loss at 1.5484 Take Profit 1 at 1.5993 and Take Profit 2 at 1.6408 are recommended.

EUR/USD: Weekly Technical Levels for July 2 - 6, 2012

Weekly Technical Levels:

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Tip (s):

R3 and S3 are considered as clear indicators of the maximum range of extreme volatility, though it is possible to pass them through.
Pivot lines work well on the sideways markets, as the prices are most likely to be located between the R1 and S1 line.
Within a strong trend the price is expected to be lower than the pivot point line and continue the movement.
In case of the breaking news release that may affect the market, the price is likely to go straight through R1 or S1 and even reach R2 & R3 or S2 & S3.

Observation (s):

• If the trend is of upside character, then the strength of the currency will be defined as following: EUR is an uptrend and USD is a downtrend.
• Most of the traders use the Fibonacci retracement to determine accurately the psychological support and resistance levels.

GBP/USD Intraday Technical Analysis 2012-06-29

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The spot rate is currently testing the upper limit of its medium term bearish channel at 1.5650 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide buy-signals but approching overbuy zone supporting the assumption of a decline. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in a short term.
According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 1.5650 with the 1st objective at 1.5710 and then at 1.5730. A break through 1.5630 will invalidate this scenario.

GBP/USD: Intraday Technical Analysis for June 28, 2012

Weekly Pivot Point: 1.5640.

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Still hold on to our position to long buying above 1.55 and shot selling below 1.5640 and 1.5725 with placing a stop loss at 1.5785.
Sideways Trend: Prices are moving within a narrow range between 1.5640 and 1.5555.

GBP/USD:

• Resistance: 1.5640. (Sell below this level).
• Support: 1.5500. (Buy above this level).
  

Trading Recommendations:

According to the previous events, the price is still between the levels 1.5640 and 1.5555.

• The descending movement will probably take place lower than the 1.5640 level with the first targets at levels 1.5580 and 1.5513.
• BUY deals are recommended higher than the 1.5503 level with targets at levels 1.5573 and 1.5635.

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. In the light of the previous events, the price is still between the levels 1.5640 and 1.5555, 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 1.5503 level with its first target at the level of 1.5573. From this point, the pair is likely to begin an ascending movement to the point 1.56 and further to the level 1.5640. However, if the pair fails to pass through the level of 1.5640, the market will indicate a bearish opportunity below the strong resistance level 1.5640 (The weekly resistance 1). In this regard, SELL deals are recommended lower than the 1.5906 level with the first target at 1.5640. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.558 then 1.5503 (The weekly support 1).