Current price movement in the downtrend within correction

May 7, 2015

Current trend

This week has been one of the most difficult for the Pound in the time period of the downtrend. Monthly chart shows that the price currently reached one of the most important level of   1.5200.

Given current price movement in the downtrend within correction, the levels of 1.5200-1.5230 is the zone of Fibonacci retracement of 23.6%, which is the first level of correction. A lot will depend on the results of today’s election in the UK, and the American labor market statistics, which will become known tomorrow.  

If the price goes up, next resistance level will be 1.5600, which coincides with 38.2% of Fibonacci retracement. If downtrend in the Pound resumes (which will be possible in case of breakdown of the levels of 1.5130 and 1.5030), the Pound will go to the local lows at the level of 1.4630.

Support and resistance

On the daily chart histogram OsMA is declining trying to reach zero level. As soon as it goes to the negative zone, it makes sense to open sell positions. Stochastic is in the sell zone; however the fact line has crossed the slow line from top to bottom, which gives a buy signal.

Resistance levels: 1.5250, 1.5370, 1.5440 and 1.5530.

Support levels: 1.5130, 1.5030 and 1.4940.

Trading tips

It makes sense to buy the pair in case of breakdown of the level of 1.5250 with take profit at 1.5440 and 1.5530. Sell positions can be opened after breakdown of the level of 1.1530 with the targets of 1.5060, 1.5030, 1.4940 and 1.4630.

Publication source
LiteForex information  LiteForex reviews

December 2, 2016
Equities headed broadly south in Asia overnight
Revealed a solid 53.2 November ISM reading and a 0.5% October construction spending rise that followed big upward Q3 revisions, both of which lifted prospects for GDP. We also saw a 17k Thanksgiving week spike in claims that reversed the remarkably tight 333k Veteran's Day figure...
December 2, 2016
Silver lining for precious metals?
I do apologise in advance for bombarding you with lots of commodity reports, but ahead of Friday’s NFP report, the FX markets tend to create lots of false moves, so it is difficult to make much of todays moves...
December 2, 2016
Payrolls Friday. USDJPY doji, third time's a charm
Its payrolls Friday and the markets are expecting to see a solid print for November following Wednesday's ADP payrolls increase. Yesterday, the ISM and Markit's manufacturing PMI showed a strong increase in the reading...

Larson&Holz IT Ltd Rating Rating
Trade360 Rating
HotForex Rating
Fort Financial Services Rating
Grand Capital Rating

24option Rating
TropicalTrade Rating
OptionRally Rating
Binary Brokerz Rating
TopOption Rating
IQ Option Rating