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Technical Analysis: GBP/USD Forms Downward Channel to 1.4950

Posted by Chris Advincula on Nov 6, 2015 7:35:05 AM

GBP/USD  continues to slide for a second day from 1.5200 to 1.5125 in Europe as shown on the 10-minute chart. Despite the thin and cautious market before the US Oct. Jobs data, the market continues to digest the BOE's dovish monetary policy stance from yesterday.

On the Daily Chart, the tops are descending from 1.5900 to 1.5450 while the bottoms decline from 1.5350 to 1.4950 forming a downward channel. The 14 DMA toppish at 1.5700 and bounce at 1.5225. However, more importantly, the 14 DMA support lies at 1.4800 from Apr 1.

The 14 day RSI peaks at 72.00 from May 29 and tops continues to weaken to 55. It is currently at 36. If the RSI level breaks 24, that would be the equivalent level of spot 1.4700, with potential to move lower to test 1.4600 again as seen on April 1. The EURGBP cross moved higher to test 0.7170, 61.8% fibonacci retracement of 0.7250 (Oct 28 high) to 0.7043.


Charts: WorldWideMarkets Alpha Trader


Topics: GBPUSD, Forex Market, Forex Trading, EUR/USD, Technical Analysis


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