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GBP/USD Will Continue To Drop

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

I will start off with the daily timeframe for GBP/USD pair.  It starts its day below the 21 ema with the 5 ema beginning to cross the 13 ema with a stochastics pointing down.

 GBP/USD Daily Analysis, November 10, 2011

Yesterday, price did reach the 61.8 fib practically down to the pip and tanked and there is no reason to think it will stop.

 GBP/USD 4hour Analysis, November 10, 2011

Moving on to the 4 hour timeframe I can see that price has broken out of its price channel and has fallen below the 50.0 fib level which indicates to me that this pair will keep tanking.  Price has been riding below the 5 ema and the lower Bollinger band is wide open and pointing down.

 GBP/USD 1hour Analysis, November 10, 2011

Moving on to the hourly chart price is also riding the 5 ema down and looking very bearish.  Same thing with the 15 minute timeframe, except price has been riding down the 21 with the 55 stepping in when necessary.

 GBP/USD 15minute Analysis, November 10, 2011

Price has just poked below yesterdays low at 1.5904 and has bounced back up to retest and wants to head down.  Price has broke below the weekly S1 at 1.5909 and there are no monthly pivots in the way before 1.5837 which is the monthly central pivot.
 

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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