Forex Technical Update August 18, 2010
GBP/JPY - Stalking Pullback after Breakout from Congestion
- 4H and 1H: The GBP/JPY tested the rising support that can be seen in the daily chart below. The daily chart, and the last GBP/JPY update also suggested a rally from here for wave E to complete a consolidation pattern.
- The 4H chart shows a reversal candlestick combination right at this rising support. This comes after a breakout from a smaller congestion pattern. The 1H chart shows this breakout from congestion in more detail. After testing 132.45, the market rallied to the 50% fibonacci retracement level.
- This is still a pullback, and we can't be bullish just yet. The RSI remains below 60, and the pullback should break above 61.8% or 134.00 to initiate the short to intermediate term bullish consideration (shown in the daily chart below). To be more clear, the time-frame is about 1-2 weeks towards 1.38.
- Again, there hasn't been a confirmation in the lower time-frame, and no signal in the daily, so this outlook may be 1 or 2 sessions early.
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.