By: Doug Rosen
GBP/USD pair bounced off the daily 55 yesterday and has fallen and bounced a bit off the daily 21 and 13 ema's. Price recently made a fib at the 38.2 level of the recent move down and the stochastics is in the overbought zone so I do expect price to continue to roll over to the downside.
Looking at the 4 hour chart I can see that price has wicked below last month's low overlapped with the 4 hour 55 and 144 ema, I expect a retracement to the 5 ema then for price to continue its direction to the downside.
Moving over to the 1 hour chart I can see that price has broken below the weekly pivot point and has retested it and has bounced off of it and the 5 ema is crossing below the weekly central and will keep pushing price down.
Looking at the 15 minute chart price has been gracefully riding down the 13 ema and the bounce off the hourly 233 overlapped with the yesterdays low. Price has just met back up with ema resistance on the 15 minute chart and I expect the ema's to take control and for price to continue to fall.