Saturday, 26 January 2013

GBP/USD Retains Bearish Bias after Breakdown

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More at http://daily20pips.blogspot.com/2013/01/candice-swanepoel-is-victorias-secret.html
GBP/USD (daily chart) as of January 25, 2013 has retained its bearish bias after a two-week tumble that broke below a succession of support levels. The major bearish technical event occurred mid-week last week as price broke down below a key confluence of support around the 1.6000 price region. This support confluence included a major uptrend support line extending back to the June 2012 low at 1.5266. Before this trend line was broken to the downside last week, it had been tested and respected at least five times, further reinforcing its validity each time. After the breakdown below this trend line and the important 1.6000 support level, price dropped towards further downside support around 1.5825, re-testing the mid-November low. The pair then stalled and fluctuated around 1.5825 before dropping further yesterday and today to hit the 1.5750 support level and establish a new five-month low for the pair. On a further breakdown below 1.5750, continued bearishness could move price towards key potential support around 1.5600.

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