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GBP/USD Is In The Middle of Channel

By Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

By: Doug Rosen

The GBP/USD continues to look bearish as ever.  On the daily timeframe price has reached the 78.6 fib of the last move up and it has already pierced it.  The lower Bollinger band is wide open pointing straight down as is the 5 ema. 

 GBP/USD 4hour Analysis, November 25, 2011

Moving on to the 4 hour timeframe price is in a price channel and I will be taking shorts from the top of the channel since price is in a downtrend and I will be watching for breaks from the bottom of the trend line and will also take shorts on a breakout from below with a retest.  Price s riding below the 5 ema. 

 GBP/USD 1hour Analysis, November 25, 2011

On the 1 hour timeframe price is even more noticeably in the center of the price channel.  Price is riding below the 21 ema and making a fib

On the 15 minute timeframe price is looking a bit bullish since the 5 ema has crossed above the 13 ema and price has already pierced the 55 ema.  Price is retracing back up to yesterdays low and could head back down. 

 GBP/USD 15minute Analysis, November 25, 2011

The 21 and 144 ema's are still pointing and heading down so the downtrend continues.  I would keep a close eye on the 1 hour timeframe and trade from the top or bottom of the channel and watch for breaks, most likely tot he downside.
 

Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

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