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GBP/USD Looks Bullish But It’s Not

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

Starting out looking at the daily chart for GBP/USD pair it is obvious that price did make a fib yesterday which overlapped with the 21 and 55 ema's.

 GBP/USD Daily Analysis, November 04, 2011

This pair has been successively making a series of higher highs and higher lows, the constitution of an uptrend and I don't see any reason for it to end just yet.

 GBP/USD 4hour Analysis, November 04, 2011

Moving on to the 4 hour chart we have had the 5 ema cross above the 13 and 21 and we do look bullish except the upper Bollinger band is closing n on price and pointing down.

Moving over to the hourly chart, price recently bounced off the 21 ema which is overlapped with the weekly M2 at 1.6008 and is trying to ride up the 5 ema.

 GBP/USD 1hour Analysis, November 04, 2011

Finally, I look at the15 minute chart and price has bounced off the 55 ema, however, the upper Bollinger band is narrow and not open and the stochastic is pointing down.  This pair does appear to be bullish, however, it is up against a resistance area that has been holding up for a week.  If price breaks above 1.6060 I expect it to go to 1.6140  If it breaks below 1.5960 then i expect it to fall to 1.5890  .

 

Doug Rosen
About 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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