Forex Technical
GBPUSD Bullish or Bearish
May 10, 2010
Gary Fichardt - FxBigDog
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Chart Analysis
Traders are looking at the GBPUSD pullback and seeing selling pressures off the 618 Fib level on the Intermediate down swing.
The GBPUSD had a strong and fast correction after last weeks dip. 1.4831 still holds as the last low support of the short-term swings. Short-term traders that enjoy tighter stops will be looking for confirmation of a low break before reacting.
Position traders have already placed there short on the pull back to the 618 fib level.
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Analysis
Looking at the 4 hour chart, it shows that see a turning point with a evening star that still needs to confirm in the next hour (2pm EST). Once confirmed, it may offer tighter stops just above the the evening star. But keep in mind that stops will still be placed inside the down swing coming off the high at 1.5390
Levels that will be key on the downside will be the 1.4782, the significant low. Any trading belwo thjat level will setup up more bearish dips towards 1.3900 in the coming weeks.
It is very important that traders find a technic that they are comfortable using, then be consistent in their trading .
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