GBP/USD: Head and Shoulder with Weakness ftu_063010_gbpusd  

  • 4H: A quick 4H look at the GBP/USD. It is still bullish. since beginning of June, rising in an upward channel. The RSI may be dipping, but price hasn't yet, so in the short intermediate term this pair is still bullish. The previous post noted to look for topping action near 1.52, so at 1.5140, we may be a tad early.
  • We have some temporary topping that may bring some retracement, but a break below 1.48 would suggest return to the bearish outlook.

ftu_063010_gbpusd1h

  • 1H: The 1H chart shows momentum trying to turn bearish, but failing to cleanly break below 40. Price action shows a head and shoulder pattern with a more complicated right shoulder. The neckline is being tested. Over the first half of the European session, I noticed that many currencies were paring losses against the USD and JPY. However the sterling was not able to hold any attempts in paring its losses.
  • Relatively I saw that the GBP/JPY and GBP/USD were not able to hold there retracements, while the Euro, Aussie for example were. This starts to put the pebbles on the bearish scale in my outlook.
  • However, because there are no signals yet, and the market has been bullish in the short-term, I am going to continue stalking the current rally for topping action.

  Fan Yang Currency Analyst 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.