GBPUSD – Massive Resistance Lies Ahead

By Unknown

Selasa, 10 Mei 2016

GBPUSD – Massive Resistance Lies Ahead

Sterling was the main motto highest achievement in the last month, but after a strong post-election rally, he can begin lose a little steam against the dollar.

cable is about to face a huge test of his more long-term strength to approach a group of support and resistance levels and previous 233 days simple moving average.

again, this level marks the 50% retracement of the entire sell-off cable which began there nearly a year.

As the pair approaches that level, both the stochastic and MACD histogram on the daily chart suggests that the rally could lose some momentum. I would not say the bearish divergence is complete at this point, but it certainly looks like it will be. A bearish divergence would also not guarantee that a reversal is occurring now, just that it may occur when the momentum is lost.

For now, I have not seen a real reversal signal and that can not happen until it reaches the 1.5780 - 1.5880 range. If I see a reversal pattern around this area, like a double top, head and shoulders, or even a single or double candlestick formation, like a shooting star or bearish engulfing pattern, I expect to see a rebound off this level.

This could suggest that the rally more long-term dollar is ready to resume, after a correction than a month. An early sign of what could come April 29 peaks being broken, or better 5 May low. Here are below a lower break of nearly five years last month would provide further confirmation.

A break above the region of 1.5780 to 1.5880 would be very bullish in my opinion, with the next resistance level coming around 1.62, the 61.8% of retracement of the previous movement and a new level of support and resistance.

Furthermore, an overview of client positions and strength of the currency, among many other things, are on the section exchange site laboratories OANDA.

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