GBPUSD Analysis

There is a good chance that cable had completed another minor correction phase from its last impulse wave. First target is around 1.5864 which is the 100% projection of 1.6744 to 1.6058 from 1.6546. Longer term projection is around 1.5445 which is the 161.8% projection. As for risk assessment, a break above 1.6100 will change my view regarding this trend continuation.

GBP/USD H4 and Daily Chart, Buy Now

My setup from my previous post didn't play right although the pair did made a lower low. Cable tested the 1.4781 support and reached as far as 1.4797. On daily chart, the candlestick make a reversal pattern (forgot what they call that pattern :P) and still forming a divergence in both 4-hour and daily chart. However, confirmation for uptrend in 4-hour time frame is above 1.5381. If you aggressive enough, you can buy now with stop loss below 1.4781, targeting 1.5381 first and 1.5581 (38.2% retracement of 1.6877 to 1.4781) after that. That is all. Have a nice weekend guys!

Remain Bearish Below 1.604

Above is GBP/USD daily chart. The pair is in consolidation after the huge fall to 1.5769. I'll keep my 1.5272 target as long the pair maintain below 1.604 in daily chart. However, support can be seen at 1.5769 and 1.569 (38.2% retracement). Break above 1.604 will target 1.6125 (30 Sept. high) and 1.6206 (23.6% retracement).

Cable Next Support At 1.5810

GBP/USD H1 Chart

GBP/USD D1 Chart

Above is Cable D1 chart. Since last post, the pound kept on losing against the yen following the break of 1.6130 support area. It reached 1.5915 on Friday and trade in 130 pips range to 1.6045. I add Fibonacci retracement from 1.6467 to 1.5915 (H1 chart) and the 38.2% and 50% level appear near the resistance trendlines. As for support levels, 100% projection of AB from C is shown in D1 chart, while the 100% projection from B is near the 161.8% projection and 50% Fibo of 1.3502 to 1.7042 at 1.5272. Trading plan for the week is still the same, selling GBP at resistance or support breakout, at least until 1.6100 area is breach. Another thing to consider is the NFP on Friday as sometimes the market become choppy prior to the release. Have a nice trading week :)

Cable Hit Resistance, Sell Now!

Cable H4 Chart

Cable D1 Chart

Above is Cable 4 hour chart. The pair bounce from 1.6688 resistance which I mentioned in my last Cable post. The resistance turns out to be the 61.8% retracement of 'A' to 'B'. I already enter a position near that resistance, targeting the 50% retracement of 'A' to 'B'. I also add Fibonacci of 'B' to 'C' (purple dash) to anticipate a breakout from the current uptrend channel.

Looking at bigger time frame, the pair could be forming head and shoulder reversal pattern. However, it must break the neckline to complete this pattern. If the neckline breaks, the target is the 50% Fibo retracement of 1.3502 low to 1.7042 at 1.5272, exactly 1382 pips from GBP/USD current price.

GBP/USD Daily & H4 Chart

GBP/USD Daily Chart

GBP/USD H4 Chart

Above is Cable daily and 4 hour chart with trendlines and fibonacci. The pair bounce from 23.6% retracement might find its top if the resistance trenline holds. I think I see a flag pattern in progress in 4 hour chart. I also draw the target projection around 38.2% retracement. This strengthen my GBP/JPY analysis also as I still look at the whole thing as downtrend.