The GBPUSD had a significant bearish momentum yesterday after a bad UK GDP data. On h4 chart below we can see there were still some buyers around 1.5780 – 1.5750 support area just like what happened on January 13, but with less momentum and of course, different reason and so far price still trapped in range area of 1.6000 – 1.5780/50 area. A bad GDP could diminish the technical bullish outlook even trigger a technical bearish reversal scenario especially if price break below 1.5650 testing 1.5300 region. On the upside, we still need a clear break above 1.6057 to continue the bullish scenario testing 1.6180 – 1.6300 area. I think I will stand aside for now. Waiting and observing market reaction around those important levels. A quote from legendary Jesse Livermore will describe the best thing to do in current situation: “Don’t take action with a trade until market, itself, confirms your opinion. Being a little late in a trade is insurance that your opinion is correct. In other words, don’t be an impatient trader”
©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.