Candlestick Daily: GBP/USD to 1.5400 Next?

Monday, July 9, 2012, 7:36 AM

July 09, 2012

CURRENCYCURRENT BIASPOTENTIAL STRATEGY
EUR/USD (Short Term)
Bouncing modestly after bearish gap, looking to sell rallies into upper 1.2300s
GBP/USD (Short Term)
Sell if GBP/USD breaks below 1.5459, stop at 1.5516, target at 1.5405. See full report for more details
USD/JPY (Short Term)
Lackluster trade continues in tight range below 80.00 psychological resistance
USD/CHF (Short Term)
Pulling back from 7-month highs near .9800, but bullish momentum intact. See full report for more details
USD/CAD (Short Term)
Consolidating around 1.0200 round handle, monthly pivot resistance looming at 1.0256
AUD/USD (Short Term)
Breaking lower below 1.0200 round handle, room for further drops in today's North American trade
NZD/USD (Short Term)
Dropping modestly, room down to .7900 or .7850
EUR/USD (Intraday Forecast)
Potential Strategy
Bouncing modestly after bearish gap, looking to sell rallies into upper 1.2300s
What is the trend?Neutral
What is this pattern?No pattern present - See all chart patterns
Why is this significant?
What other indicators or Fib Levels support this thesis?
Reason for Strategy

The EUR/USD gapped lower to begin the week, but has since started to inch modestly higher on tepid optimism around the EU Finance Ministers meeting. Currently, the pair is trading above the round 1.2300 handle and may well continue to grind higher during today's North American session, but the longer-term outlook remains bearish. Bounces into previous-support-turned-resistance near the Monthly R1 pivot at 1.2383 would be seen as strong selling opportunities later in the week. Stay tuned to FX360 and our daily Live Market Analysis webinars for any intraday updates or trade opportunities later today.

Support & Resistance Levels
Resistance 3tbd
Resistance 21.2500Round handle resistance
Resistance 11.2383Monthly S1 Pivot
Current Price1.2292
Support 11.22502-year lows
Support 21.2200Round handle support
Support 3tbd

4hr Chart -
4hr Chart -
DISCLAIMER: The information provided below should not be relied upon as a substitute for extensive independent research before making your investment decisions. FX360 .com is merely providing these views for your general information. The information presented in the views below does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. We generally encourage readers and clients not to risk more than 3% of their account on any single trade. In addition, any projections or views of the market provided by the authors may not prove to be accurate.
FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com
NOTE: All trade ideas on FX360.com are hypothetical. FX360.com has not placed these ideas in a live trading environment. Forex Trading involves high risks, with the potential for substantial losses that exceed your initial deposit and is not suitable for all persons. Past performance is not necessarily indicative of futures results.

Any news, opinions, research, analysis, prices or other information contained on the trading.co.uk website are provided as general Market commentary and do not constitute investment advice. Trading.co.uk is not liable for any loss or damage, including without limitation, any loss of profit which may arise directly or indirectly from use of or reliance on such information.

FEATURED ARTICLES

Spread Betting? I'm a trader not a gambler! | Stuart Lane

01 December 2012

Stuart Lane explores the stigma associated with Spread Betting versus trading or investing?

What does it take to be a successful trader | Tom Hougaard

12 June 2011

Successful trader Tom Hougaard shares some of his trading experiences and lessons - remember its not the processes you have to master its yourself.

To Seg or not to Seg that is the (money) Question

12 June 2011

How does your broker classify you as a trader and therefore treat your money!

Technical Analysis - The psychological state of the Market

12 June 2011

Why Technical Analysis is the study of Price Action and why its unfortunately an art not a science.