GBPUSD Technical Report – Week Of 14th/18th January 2013
(Mary McCarthy, Forex-FX-4X.com)
- Sterling has recently under performed versus other risk-related currencies. GBPUSD has however moved back into the mid-point of the recent trading range, after a false break under the 1.6000 round number area/prior support earlier this week.
- The upside move on Friday was capped around the 50% corrective retrace point and this area is now viewed as potential near term resistance heading into the week of 14th Jan.
- Further to this is the 61.8% retrace of 1.5266 > 1.6347 around the 1.6208 area. 1.6200 is also a minor price pivot zone on the 4-hour chart.
- Any sustained pound/dollar downside scenario would need to take out the aforementioned 1.6000 handle which is a confluence area comprised of the following technical elements (see the daily chart below):
- an ascending trend line from the June 2012 lows,
- psychological round number area,
- prior daily candle lows dating back to early December 2012
- The key upside technical level we will be monitoring heading into next week is the 1.6300 area. The previous pinbar rejection from this area has seen price move as low as 1.5990 before finding an element of support. Any fresh attack on 1.6300 and subsequent price action setup would have our attention.
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