GBPUSD – Big Test for Major Support

By Unknown

Minggu, 29 Mei 2016

GBPUSD – Big Test for Major Support

Cable looked quite bullish since the low in April, but it seems that his inability to break the 50 fib level - 15 senior July to 13 low in April - June was a warning that the upward trend is losing steam

as you can see on the daily chart below, the 89 simple moving average day was a very good indicator of trend. for the pair for some time. sell-off today broke below and, unless a late rally seems likely to close below.

If we see this, it suggests the bull run is over and the bears are back in control. It would also create a very bearish candle on the daily chart, and unless a strong recovery in the end of the week, a very bearish weekly candle.

Initial support can be found in the 1.5450 area where an upward trendline - May 5 low -. intersects support and previous resistance

Offering additional support at these levels is the simple moving average 233 a day. Although this has not been a reliable support or resistance level during the recent consolidation phase, as they are rarely, it was sometimes in the past could not be again.

The SMA 21 weeks on the other hand has been a reliable support and resistance level for the past two years, which could also provide important support here.

a break below this level would be very bearish for the pair and could signal a return to that. the lowest of the year in the coming months

The next support level could come from around 1.5330 to 8 low in July - followed by 1.5170 -. 1 June low

The tools above and others can be found in OANDA Forex Labs.

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