GBP/USD Intraday Technical Analysis and Trading Recommendations for December 19, 2012 2012-12-19 |
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The GBP/USD pair has been fluctuating heavily within the past few weeks failing to maintain a directional long-term trend.
On the mid-term aspect consolidation came again above 1.5970. Getting back inside the previous consolidation range indicated high probability that the upper limit around 1.6160 would be visited, which took place last week, with further bullish pressure towards 1.6300, corresponding to 78.6% Fibonacci Level.
Consolidation above 1.6125 allowed further bullish domination towards 1.6200, the psychological resistance. It corresponds also to the long-term downtrend line depicted on the Daily chart. In its term it has been broken too this week.
On the 4H chart the GBP/USD pair expressed significant bullish reaction towards price zone between 50% and 61.8% Fibonacci levels, which pushed the GBP/USD pair to test 1.6200, then 1.6300.
The best available option after this quick bullish move is to wait and look for bearish reversal pattern around 1.6315 in order to go short on the pair.
On the mid-term, price zone 1.6125 - 1.6100 is rendered a valid BUY entry on retesting as it corresponds to the lower limit of the current 4H bullish channel.
Breakdown below the Intraday Support Price Zone 1.6125 - 1.6100 (the lower limit of the current 4H bullish channel) is necessary to maintain the long-term bearish movement.
Technical resistance levels: 1.6310 1.6350, and 1.6400.
Technical support levels: 1.6200 ,1.6170, 1.6120, and 1.6000.
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