GBP/USD Breaks Trendline Support Giving A Potential Bearish Clue

The GBPUSD broke below trendline support yesterday and has been able to stay below the level today.  The trendline has provided support on 4 separate occassions during GBPUSD’s move higher from the April 22nd low of 1.4396 to the high reached June 30th at 1.6743.

The trendline was broken at the 1.6435 level yesterday. Today the trendline comes in at around the 1.6460 level.  Should momentum continue to the downside, the longer term target could extend down to 1.5846 intially.  Note, however, that progression down, must overcome hurdles including the low floor that has contained the downside at the 1.6187 to 1.6200 level.

On the hourly chart, the pair broke below the 200 hour moving average at the 1.6452 level.  Note the 200 hour moving averages is going sideways . The 100 hour MA is bending to the downside, which is a bearish development.  If the market is able to maintain below these levels, currently at the 1.6447 and 1.6465 levels respectively, the downside momentum has the chance to develop.

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Comment by manofasia

2009-07-03 20:47:30

Thanks Greg

Your info help me to trade and make profit without loss

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