02/03/15 GBPUSD finds support on the trend line on the monthly chart


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GBPUSD finds support on the trend line on the monthly chart after a bullish surge from the pair in the month of February. Candle last month opened and closed at 1.5094 and 1.5434 respectively. Based on the monthly chart, candles are expected to resume on a bullish trend due to the failure of breaking below support line and is expected to head towards the 200 EMA in the long run.

 

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Candle last week formed a spinning top on the weekly chart with it’s shadow having touched the Fibonacci Retracement 23.6% at 1.5478. The pair starts to show a weakened bullish momentum and should the candle this week close forming a bearish candle closing below 1.5270, a bearish trend would be confirmed and prices are then expected to fall.

 

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Focusing on the daily chart, candles plunged upon breaking above Fibonacci Retracement 23.6% at 1.5478. In addition, candles touched 1.5500, a psychological resistance price, where speculators took profit for the bullish run resulting in prices plunging.

 

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Focusing on H4 chart, candles have touched the bottom trend channel with stochastic oscillator hooking above the oversold region, indicating a weaker selling action in the market. However, given that candles have already shown signs of weakness upon touching 1.55 and having found exhaustion at Fibonacci Retracement 23.6% on the daily chart, we can only expect prices to drive lower and await for confirmation when candles have broken below the lower trend channel.

 

Trend Direction
 S3
S2
S1
R1
R2
 
Bearish in the long run1.51881.53341.54021.54661.5571  

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