Monday, August 17, 2015

American session may see gbp/usd bottoming

After false breakouts in both directions of Asian session and then a collapse during European session gbp/usd pair may be bottoming. This is not for sure yet, but the signs are there.

We do see the pair making lower lows, but each low now is not far from the previous one. There have been a number of bullish pins, but those failed to have a follow through upwards. All in all, we see 4 pushes downwards. There might be another one, but you have to bear in mind that Pound is in a short term uptrend.

If you look at 30 minute Pound chart you will see more support lying ahead. 200 sma and ema are at 1.5610 level, which I expect to hold today. The pair has fallen 67 pips as of now and this might be the end of it. 

Key support (if 1.5610 is broken) is in 1.5587 level (the low of August 14). There is no need to hurry entering longs before clear signal of reversal is made. I do wait for a few bullish pins that do not exceed the low of the day or a W on 15 minute chart. 

4 pushes to the lows on 15 minute chart

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