May 23, 2008 07:11

Technical Analysis – GBP/USD – More gains expected

Posted In: Technical Analysis
By:

5-23-08

7:12a GMT – Pair is coming down on two support levels after breaking higher from its already bullish channel. First level of support is the former resistance line that was broken on 5/22. Second is the support (closest line in green on chart below). From a channel which is still intact. RSI is also approaching the bottom of its bullish channel.

Trading Idea: I will wait for a bullish candlestick to confirm the trade and then enter long. First target is 1.98 then 1.985 and higher. If it breaks support levels look for 1.975 then 1.97.

Result: +80 pips

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