Posted in: Technical analysis

GBP/USD currency trading recommendation 18 march 2016

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GBP/USD currency trading recommendation 18 march 2016 | 101trading.co.uk

march 18-GBP1|101trading.co.uk

march 18-GBP1|101trading.co.uk

On January 21, after the GBP/USD pair moved below 1.4220, evident signs of bullish recovery were expressed around 1.4075. Hence, previous weekly candlesticks closed above 1.4220 and 1.4360 again.

 

Bullish persistence above 1.4360 was mandatory to maintain enough bullish strength in the market. The first bullish target was seen at 1.4615 where the most recent bearish swing was initiated.

 

As previous weekly candlesticks maintained their bearish persistence below the depicted demand zone (below 1.4200), the next weekly demand level was located at 1.3845 (historical bottom that goes back to March 2009).

 

As expected, an evident bullish recovery and a bullish engulfing weekly candlestick were expressed around 1.3850 (prominent weekly demand level). That is why, a valid buy entry was suggested near the same level.

 

The price zone of 1.4235-1.4375 constitutes a significant supply zone to offer evident bearish rejection.

This bearish rejection was manifested on the weekly chart until the price level of 1.4050 managed to push the pair again to the upside.

 

Note that bullish persistence above the price level of 1.4375 allows further bullish advancement towards 1.4620 to take place.

march 18-GBP2 |101.trading.co.uk

march 18-GBP2 |101.trading.co.uk

 

A recent lower high was achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4235.

Hence, an extensive bearish breakout below 1.4235 was expressed on the daily chart (GBP/USD looked oversold few weeks ago).

That is why; signs of bullish recovery and a profitable long entry were expected around 1.3850. A recent bullish swing was expressed towards 1.4375.

On March 13, the broken demand zone (1.4235-1.4375) stood as a significant supply zone to offer bearish rejection in the short term.

A lack of bearish rejection around 1.4235 allowed further bullish advancement towards the level of 1.4375.

On March 14, evident signs of bearish rejection were expressed around 1.4375 (61.8% Fibonacci level).

That is why; a recent bearish movement was executed towards 1.4050 where the current bullish swing was initiated.

 

Today, the price level of 1.4375 (61.8% Fibonacci level) is being challenged again. Temporary bullish breakout is being manifested on the daily chart.

If bullish persistence above 1.4375 is maintained, a quick bullish movement towards 1.4530 and 1.4600 should be expected.

Otherwise, the GBP/USD pair will remain trapped between price levels of 1.4375 and 1.4150.

Michael Becker | Analytical Expert of Instaforex| 101trading.co.uk

Michael Becker | Analytical Expert of Instaforex.com| 101trading.co.uk

InstaForex

GBP/USD 14-03-2016

Trading Recommendation for GBP/USD and technical levels| 14 March 2016

GBP/USD 14-03-16

GBP/USD 14-03-16

On January 21, after the GBP/USD pair moved below 1.4220, evident signs of a bullish recovery were expressed around 1.4075. Hence, previous weekly candlesticks closed above 1.4220 and 1.4360 again. Bullish persistence above 1.4360 was mandatory to maintain enough bullish strength in the market. The first bullish target was seen at 1.4615 where the most recent bearish swing was initiated.

As previous weekly candlesticks maintained their bearish persistence below the depicted demand zone (below 1.4200), the next weekly demand level was located at 1.3845 (historical bottom that goes back to March 2009). As expected, an evident bullish recovery and a bullish engulfing weekly candlestick was expressed around 1.3850 (prominent weekly demand level). That is why, a valid buy entry was suggested near the same level.

On the other hand, the price zone of 1.4222-1.4360 now constitutes a significant supply zone to be watched for a possible short-term bearish rejection. Otherwise, bullish persistence above the zone of 1.4222-1.4360 allows further bullish advancement towards 1.4620 to take place in the market.

GBP/USD 14-03-2016

GBP/USD 14-03-2016

A recent lower high was achieved around the level of 1.4530. This applied extensive bearish pressure against the price level of 1.4235. Hence, an extensive bearish breakout below 1.4235 was expressed on the daily chart (the GBP/USD looked oversold few weeks ago).

That is why, signs of bullish recovery and a possible long entry were expected around 1.3850. A recent bullish swing is currently being expressed towards 1.4375. The broken demand zone (1.4235-1.4375) now constitutes a significant supply zone to offer bearish rejection in the short-term perspective.

Early signs of a bearish rejection were expressed around 1.4235 (50% Fibonacci level depicted on the daily chart). However, the recent bearish signs were not strong enough. Hence, more bullish advancement towards 1.4375 was expressed as expected. Trading Recommendations:

Price actions should be watched around the level of 1.4375 for an intraday sell entry. S/L should be placed above 1.4420. Initial T/P levels should be located at 1.4220, 1.4100, and 1.4050. On the other hand, risky traders can wait for a bearish pullback towards the key-level of 1.4030 to buy the GBP/USD pair.

Michael Becker | Analytical Expert of Instaforex| 101trading.co.uk

Michael Becker | Analytical Expert of Instaforex| 101trading.co.uk