Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.
toc-menu-hamburger.png
table of content

Table of Contents

toggle-toc.png

GBP/USD Bounces During Last Session - 19 December 2014

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The GBP/USD pair fell initially during the session on Thursday, but turned back around to form a very positive candle. However, we are still well within the consolidation area that we had been in for some time, and as a result I feel that the market will essentially bang around in this area going forward. With that being the case, I think that there could be selling opportunities above on resistive candles, as the market continues to bang around in this rectangle. The 1.55 level below is massively supportive though, just as the 1.58 level above is massively resistive.

For myself, I think that the market cannot truly be bought with any type of confidence until we break above the 1.60 handle, which would signify a trend change as far as I can see. I have no interest whatsoever in buying this pair, as the US dollar is without a doubt the strongest currency in the Forex market, so quite frankly I’m just not going against the US dollar in general.

Follow the trend

I tend to follow the trend anyways, but in this particular case I think that we are just simply starting to take a bit of a break after a strong move lower. With that being the case, although I don’t necessarily think that the British pound is a bad currency, it’s hard to go is a US dollar. With that, I think it’s only a matter of time before we break down below the 1.55 handle, and then perhaps head to the 1.50 level given enough time. At that level, I would anticipate seen a lot of support in the marketplace, simply because it is a large, round, psychologically significant number.

Ultimately, there’s probably going to be massive support at the 1.5 level, so that could be the end of the downtrend. Nonetheless, I don’t see this market reversing during the holiday season anyway, so with that being the case I am going to continue to be bearish on short-term charts as the liquidity starts to evaporate from this market.

GBPUSD 121914

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews