GBP/USD (4-hour chart as of October 16, 2013) tentatively broke down the uptrend channel (bold green parallel lines on chart) on October 9, and yesterday price bounced off the 4-hour EMA 200 that has recently held as support since October 10. Current price is trading above the EMA 20 and is capped by a support/resistance line connecting the September 24 low and the October 7 low (bold blue line on chart). A trading range has occurred between the EMA 200 and the support/resistance line.
Note also that the currency pair is making lower highs and lower lows since October 1 after reaching a high of 1.6260. There are two important price levels that should be watched very closely at this point: 1.5955 and 1.6123. The 1.5955 mark (arrow 1 on chart) is the last significant low point of the prior uptrend that extended back to July 9, and the 1.6123 mark (arrow 2) is the last significant high point since October 1. We can see how choppy price action tested 1.5955 for the last five trading sessions (pink rectangle shape on chart).
Support levels below:
1st support: 1.5955 or the 4-hour EMA 200
2nd support: 1.5885 (September 17 low)
3rd support: 1.5752 (June 17 high)
Resistance levels above:
1st resistance: the mentioned support/resistance line (bold blue line)
2nd resistance: 1.6123 (October 8 high)
3rd resistance: 1.6260 (October 1 high)
No comments:
Post a Comment