August 13, 2008 23:32

Technical Analysis – GBP/USD Approaching Strong Support

Posted In: Technical Analysis
By:

8-13-08

22:21 GMT – GU remains bearish on all time frames but is approaching strong weekly support just as the pair is reaching highly oversold levels on the weekly chart as well (it is also oversold on everything from 1h-weekly). On signs of bouncing off the support at 1.8500 this might be a good opportunity to hedge your shorts on a bounce back to 1.9000.

Trading Idea: Look for stalling and candlestick signals on the 4H and daily charts at 1.8500 with long targets back to 1.9000 as the oversold levels reset.

(click to enlarge)

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