By: Doug Rosen
The GBP/USD starts it's day off in a very bearish position, but it is a mixed bag. This pair has made a perfect fib of the last move down to the 50.0 level which was overlapped by the 55 ema almost as well as the 21 ema. More like the 50.0 fib level falls right in between the 55 and 21 ema's which is a very bearish area to be in. On the other hand, the daily 5 ema has rolled over to the upside and is just below price as is the 13 ema and the stochastics is in the oversold zone crossing up.
Moving on to the 4 hour price has been fibbing in both directions. We had a near perfect 50.0 fib of the last big move down which was overlapped with the 233 ema not to mention the monthly central pivot in the same vicinity, however, we been making swing fibs to the upside. So I guess we are in a bit of a fib war.
On the hourly time frame price has been noticeable fibbing its way upside and just recently made a fib off the 233 ema which is shadowed by the 55 ema as well overlapped with the weekly M3 at 1.5624
Finally, on the 15 minute time frame price came close tot he 233 ema then headed back up. At the time I am writing this up price is just against but below the daily central pivot at 1.5667 and just bounced off the weekly M3 at 1.5624 but approaching the weekly R1 at 1.5691 and heading up toward the monthly central at 1.5749 which has ema overlaps.
The GBP/USD is closely correlated with the USD/CHF and the EUR/USD so watch them carefully as well if trading this pair.