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

February 27, 2017
EURUSD dropping perfectly, remain bearish
Price is dropping nicely towards our profit target. We remain bearish below 1.0604 resistance (Fibonacci retracement, Fibonacci extension, horizontal overlap resistance) for a further push down to 1.0494 (Fibonacci extension, horizontal support)...
February 27, 2017
Gold reached three-month highs
Spot gold remained on strong bullish footing on Friday. After an Asian flat the price got an upward impetus in the European morning...
February 24, 2017
Gold surges to major $1250 resistance as uncertainty prevails
Gold surged Thursday on a breakout of its previous consolidation to hit and slightly exceed major technical resistance at $1250, a level not seen since early November...

XM Rating
Cms Trader Rating
FX Giants Rating
Exness Rating
Fort Financial Services Rating
Larson&Holz IT Ltd Rating

Porter Finance Rating
OptionBit Rating
IQ Option Rating
OptionRally Rating
OptionTrade Rating
Binary.com Rating