GBP/USD Technical Update – Forex FX 4X – WC 3rd December
(Pound/Dollar Technical Analysis, Forex-FX-4X.com, Week Of 3rd December 2012)
- Cable moved to the highest level seen since the 5th November on Friday, before finding resistance at the 50% retrace level around 1.6061, as highlighted on the D1 GBP/USD analysis chart below.
- Price is now loosely trading in a consolidation range between the 1.6000 round number and recent resistance highs around the aforementioned 50% retrace level. A bearish engulfing candle formed on Friday but end of month fixing could be in part responsible for this price action.
- Any continued upside would need to break above the 1.6061 high from Friday and associated corrective retrace level in the first instance, the descending trend line is another level to monitor in both a breakout and reversal context; further to this is the 61.8% Fibonacci retrace at 1.6122 and the area around 1.6173 which capped price on the 17/10/12 and 1/11/12 respectively. Any extended upside over the coming weeks would need to deal with the key 1.6300 area resistance range highs.
- The alternative scenario, with a move lower in the new week (commencing 3rd December), brings last weeks low around 1.5961 into focus if price can break below the key 1.6000 handle in the first instance. Other levels of note include the following: 100 SMA (1.5921), 200 SMA (1.5860) and the multi-month swing low (1.5826).
- In related analysis we see the dollar index is still trading around the 80.00 level which held the USDX as support this week. The EUR/USD currency pair has closed the week just under the key 1.3000 level – with a descending trend line closely aligned – after an earlier move up to 1.3027.
GBP/USD Weekly Analysis – D1 Chart
Forex FX 4X.com – GBP/USD, Pound to Dollar Technical Report And Outlook For WC December 3rd 2012