By Yan Petters – The GBP/USD pair has dropped quite severely over the past couple of months. The pair fell over 1,500 pips in two months, providing unique opportunities to gain high profits. At the moment it seems that the bearish trend isn’t over yet.
• The chart below is the GBP/USD daily chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD and the Relative Strength Index (RSI).
• A very distinct bearish channel has formed on the chart, and the pair is currently trading in the middle of it.
• The pair is very close to the next support level which is located at the 1.4780 price.
• If the pair will manage to breach the support level, this will likely boost the bearish momentum, with potential to reach towards the 1.4300 level within several days.
• The next support levels are located at: 1.4100 and 1.3650.
• However, if the pair will fail to breach through the 1.4780 level, a bullish correction might take place, with the potential to reach the 1.5360 level.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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