team.ikofx
Active member
- Messages
- 216
- Likes
- 1
GBPUSD Likely To Find Buyers Around 1.7080
The British pound is trading slightly lower against the US dollar. The GBPUSD pair traded above the 1.7150 level more than twice, but failed to break the critical resistance area. This has increased the bearish pressure on the GBPUSD pair. There is a bullish trend line forming on the 4 hour chart for the pair, which might act as a support for the pair in the short term. The most important point to note from the charts is that the mentioned trend line is coinciding with the 100 moving average (4H), which increases the significance of the trend line.
The GBPUSD pair is currently consolidating around the 23.6% fib retracement level of the last move higher from the 1.6919 low to 1.7175 high. Moreover, the 38.2% fib level is around the 1.7075 level, which is very close to the highlighted trend line. If the pair moves closer to the bullish trend line, then buyers might put up a fight to hold the downside in the pair. It is very likely that they could succeed in doing so, which would again open the doors for a test of the previous high of 1.7170. The only negative thing to note at present is that the RSI on the 4 hour chart has breached the 50 level, which might encourage the British pound sellers in the short term.
Alternatively, if the pair breaks down, and closes below the mentioned trend line, then a test of the 61.8% fib level at 1.7020 cannot be denied. Any further strength might take the pair towards the 200 SMA (4H), which is currently at 1.6950.
-------------------------------------
Posted By IKOFX Technical Team: Online Forex Broker
The British pound is trading slightly lower against the US dollar. The GBPUSD pair traded above the 1.7150 level more than twice, but failed to break the critical resistance area. This has increased the bearish pressure on the GBPUSD pair. There is a bullish trend line forming on the 4 hour chart for the pair, which might act as a support for the pair in the short term. The most important point to note from the charts is that the mentioned trend line is coinciding with the 100 moving average (4H), which increases the significance of the trend line.
![GBPUSD_07_14_2014.png](/proxy.php?image=http%3A%2F%2Fs29.postimg.org%2Fa4c7bwuc7%2FGBPUSD_07_14_2014.png&hash=a9193d5919a15ad1fa588b6be011acb0)
The GBPUSD pair is currently consolidating around the 23.6% fib retracement level of the last move higher from the 1.6919 low to 1.7175 high. Moreover, the 38.2% fib level is around the 1.7075 level, which is very close to the highlighted trend line. If the pair moves closer to the bullish trend line, then buyers might put up a fight to hold the downside in the pair. It is very likely that they could succeed in doing so, which would again open the doors for a test of the previous high of 1.7170. The only negative thing to note at present is that the RSI on the 4 hour chart has breached the 50 level, which might encourage the British pound sellers in the short term.
Alternatively, if the pair breaks down, and closes below the mentioned trend line, then a test of the 61.8% fib level at 1.7020 cannot be denied. Any further strength might take the pair towards the 200 SMA (4H), which is currently at 1.6950.
-------------------------------------
Posted By IKOFX Technical Team: Online Forex Broker