MTI Analyst Articles

Support & Resistance

Big Resistance on GBP/USD

February 10, 2010

FX Monte

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Chart Analysis

Looking at the GBP/USD 4hr time frame chart we can get a good idea of direction. We also can get an idea of what the market has done and going to do. Noticing that when the market rallies one direction it almost immediately seems to pull back against that direction. That is where most traders get hurt because they always get in when the market is rallying a direction. The reason that they jump in is because they are getting in on emotion. Once they are in the trade they start to experience the pull back. Sitting through pull back is not fun because as traders sit and watch the trade always focusing on the pips they are down.

Analysis

Staying on the GBP/USD 4hr we see that there is substantial resistance at 1.6740. The bulls are currently having difficulty getting through this resistance area. If we watch this area for the remaining week there is high probability that the bulls will break through. If the bulls do break through the resistance then most likely the market will pull back and retest this area. When the bears pull back to retest it then that resistance will now become support.

 

Market Forecast

	EUR/UD	GBP/USD	USD/JPY	USD/CHF	USD/CAD	AUD/USD	NZS/USD
Resistance 3	1.4397	1.6377	91.22	1.0420	1.0313	.9320	.7438
Resistance 2	1.4392	1.6410	91.18	1.0384	1.0292	.9318	.7435
Resistance 1	1.4386	1.6515	91.05	1.0291	1.0277	.9289	.7399
Current Price	1.4293	1.6352	91.10	1.0329	1.0330	.9213	.7380
Support 1	1.4365	1.6210	90.61	1.0249	1.0239	.9203	.7358
Support 2	1.4334	1.6062	90.59	1.0244	1.0223	.9173	.7350
Support 3	1.4263	1.5895	90.23	1.0219	1.0205	.9169	.7328