Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

GBPUSD Failed To Break Above Long Term Bearish Trend Line

Currencies / British Pound Oct 03, 2017 - 04:10 PM GMT

By: Franco_Shao

Currencies

GBPUSD failed in its attempt to breakout of the long term resistance trend line from 1.7190 to 1.5016 on the weekly chart and pulled back from 1.3657, suggesting that a short term top had been formed.



On the 4-hour chart, the GBPUSD pair stays below a bearish trend line with resistance at around 1.3360. As long as the price is below the trend line, the downside movement from 1.3652 could be expected to continue and next target would be at 1.3153.


Below 1.3153 support could take price towards a bullish trend line on the daily chart, now at around 1.2930. This trend line acts as a key support for the uptrend from 1.1946. A break through this trend line would indicate that the uptrend had completed at 1.3657 already, then the following downside movement could take price towards 1.1946 previous low.


On the other side, a clear break above the trend line on the 4-hour chart could signal completion of the short term downtrend from 1.3657, then further rally to test 1.3455 resistance could be seen. Move through here if seen could trigger further upside movement to retest the long term bearish trend line on the weekly chart. Above this trend line would target next resistance level at the 38.2% Fibonacci retracement taken from 1.7190 to 1.1946 at 1.3950. This level would be the final target of the whole upside move from 1.1946.

For long term analysis, the bounce from 1.1946 is likely correction of the long term downtrend from 1.7190. A clear break below the trend line on the daily chart could suggest that the correction is complete, then another fall towards 1.1000 could be seen.

Technical levels

Support levels: 1.3153 (the September 14 low), 1.2930 (the bullish trend line on the daily chart), 1.2774 (the August 24 low), 1.2109 (the March 14 low), 1.1946 (the October 2016 low).

Resistance levels: 1.3360 (the bearish trend line on the 4-hour chart), 1.3455 (the September 28 high), 1.3657 (the major resistance trend line on the weekly chart), 1.3950 (the 38.2% Fibonacci retracement).

This article is written by Franco Shao, a senior analyst at ForexCycle.

© 2017 Copyright Franco Shao - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in